Chinese National Sentenced to 40 Months in U.S. for Laundering Millions in Crypto Fraud Proceeds

A Chinese national, Fei Liao, has been sentenced to 40 months in federal prison in the Eastern District of Texas for his role in laundering funds obtained from cryptocurrency investment fraud. Liao pleaded guilty to conspiracy to commit money laundering and was handed down the sentence by U.S. District Judge J. Campbell Barker on February 19, 2026.

In addition to his prison term, Liao was ordered to forfeit over $2.3 million in seized assets. He was also mandated to pay more than $2.8 million in restitution to the victims of the fraudulent scheme. The investigation and prosecution were handled by the U.S. Attorney's Office for the Eastern District of Texas.

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