A Bank of America insider is pleading guilty to boosting a global money laundering conspiracy that aided drug traffickers and other illegal businesses, according to the U.S. Department of Justice (DOJ).

The DOJ says former Bank of America employee Rongjian Li was a member of a money laundering and drug trafficking outfit headed by Jin Hua Zhang.

According to prosecutors, Li used his position at the bank from 2021 through 2022 to help the criminal organization open several accounts.

Zhang’s organization then used the BofA accounts, some of which were registered using forged passports, to launder illicit funds.

“As part of his involvement, when the bank’s financial auditing systems flagged or froze accounts for suspicious activity, Li helped Zhang circumvent the bank’s anti-money laundering protocols and move illicit funds elsewhere.

In addition, Li was observed sitting next to Zhang at a dinner in New York, where Zhang discussed the different fee percentages he charged various criminal groups for drug trafficking and scams.”

Zhang’s organization is believed to have laundered millions of dollars in a span of months, according to the DOJ.

“The investigation revealed that, for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than a year, Zhang and his organization laundered at least $25 million worth of drug proceeds and funds from other illegal businesses through undercover agents.”

Li has pleaded guilty to the charge of conspiracy to commit money laundering. He faces a monetary fine and a prison sentence.

“The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater.”

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The popular payments platform Zelle is preparing to implement a major change to its mobile app services.

The platform says it’s preparing to terminate all transaction capabilities for businesses and consumers on the firm’s standalone mobile app, officially ending all services after March 31st.

The app, which processed approximately $20 billion in transactions in 2024, will still be available for download – but it will only offer educational details about scams and fraud and provide a list of the more than 2,200 banks and credit unions that utilize Zelle.

Customers’ transaction records will also be removed from the app.

The change will particularly affect customers at financial firms like Fidelity, which does not offer Zelle to people with cash management accounts.

Zelle says it’s making the change due to the popularity of Zelle within US banks and financial institutions.

“When Zelle first launched, we also created a standalone Zelle-branded app for consumers whose banks or credit unions had not yet joined the network. With the strong growth of adoption by banks and credit unions, we now see just ~2% of transactions on the standalone app.

As a result of our growth, and because most people are now using Zelle in their financial institution’s mobile app or website, we are making a change to the Zelle standalone app.”

Early Warning Services (EWS), which is owned by seven major US banks including JPMorgan Chase, Bank of America and Wells Fargo, says it’s reaching out “directly and repeatedly” to users of the standalone app to make sure they’re are aware of the pending changes.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Big banks are quietly scrubbing the public record of their diversity, equity and inclusion (DEI) policies following US President Donald Trump’s upheaval of the controversial practice.

Citing banking executives, lawyers and other insiders familiar with the matter, The Wall Street Journal reports that JPMorgan Chase, Citigroup and Morgan Stanley are all “watering down” their language on DEI, while Wells Fargo and Bank of America are also starting to analyze their language.

It marks the first time that Wall Street has pulled away from DEI since first embracing it in 2020.

The banks’ pivot is in reaction to Trump’s signing of the executive order titled “Ending Radical And Wasteful Government DEI Programs And Preferencing” targeting DEI, plus his rescinding of over 80 executive orders signed by former US President Joe Biden that touch on DEI.

Morgan Stanley has reportedly deactivated a page on its website promoting a scholarship and recruiting program that was advertised as being for people who are “historically underrepresented in the financial services industry.”

If the link is reactivated, WSJ reports that Morgan Stanley will most likely reword it so the program is being advertised to a wider array of applicants.

Certain banks have also been warned by their lawyers that keeping DEI practices in place after erasing public affirmations of them leaves them at risk for criticism or potential litigation if whistleblowers alert federal officials or activists.

FOX News reported that workers and civil rights organizations have begun suing to stop Trump’s executive orders, arguing among other things, that they will negatively affect certain groups of people.

White House spokesman Harrison Fields said the Trump administration was “ready to face them in court.”

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