TLDR
- DOJ has added 12 more defendants to a case involving $263 million in stolen cryptocurrency
- The group, mainly young adults aged 18-22, evolved from online gaming friends to organized cybercriminals
- Their biggest heist was 4,100 Bitcoin ($230M+) stolen from a single victim in August 2024
- The thieves used hacking, social engineering, and physical burglaries to steal crypto
- Stolen funds financed luxury cars, private jets, designer goods, and $500,000 nightclub outings
Federal prosecutors have expanded their case against a cryptocurrency theft ring, charging 12 additional suspects in a sweeping indictment. The group allegedly stole over $263 million in digital assets through an operation that combined hacking, social engineering, and even home burglaries.
The new charges build upon an earlier indictment against Malone Lam, 20, who was first charged on September 19, 2024. Jeandiel Serrano, named in the initial indictment, was not included in the new filing.
Most of the suspects come from California and are between 18 and 22 years old. According to the Department of Justice, several defendants have been arrested, while two others are believed to be living in Dubai.
The crime ring allegedly began in October 2023 when a group of online gaming friends transformed into what the DOJ describes as a “cyber-enabled racketeering conspiracy.” The suspects adopted colorful online aliases including “Goth Ferrrari” and “The Accountant.”
Their criminal activities reached a peak on August 18, 2024, when they allegedly stole over 4,100 Bitcoin—worth more than $230 million—from a single victim identified as a Genesis creditor.
Criminal Playbook
The group used a diverse set of tactics to acquire cryptocurrency. Some members specialized in database hacking, while others made cold calls posing as customer support agents to trick victims in social engineering attacks.
The indictment reveals a disturbing physical element to their crimes. Defendant Marlon Ferro, 19, allegedly conducted home break-ins to steal hardware wallets. In one case, Lam hacked a victim’s iCloud account to monitor their movements, enabling Ferro to time a burglary at their home.
To hide their digital tracks, the thieves employed virtual private networks and cryptocurrency mixing services. They also used a money laundering technique called “peel chains,” where funds move through multiple wallets with small amounts removed at each step.
The charges brought against the group are heavy. Most face RICO (Racketeer Influenced and Corrupt Organizations) conspiracy charges, with additional counts for wire fraud and money laundering.
Living the High Life
The stolen cryptocurrency funded an extravagant lifestyle that reads like a movie script. The thieves allegedly purchased 28 exotic cars, some worth up to $3.8 million each, including Lamborghinis, Ferraris, and Rolls-Royces.
Their nightclub tabs sometimes reached $500,000 in a single evening. They gifted designer Hermes handbags to girlfriends and collected luxury watches, clothing, and even custom gold teeth grills.
To transport cash discreetly, they reportedly stuffed money inside Squishmallow plush toys. The group rented luxury homes in the Hamptons, Los Angeles, and Miami using fake identity documents.
They even hired private security and chartered jets to maintain their lavish lifestyle, all funded by stolen cryptocurrency.
Perhaps most boldly, lead defendant Lam allegedly continued directing criminal operations while in pretrial detention, instructing associates to deliver luxury goods to his partner.
This case comes as cryptocurrency crime surges nationwide. The FBI reports crypto fraud losses reached $9.3 billion in 2024, a 66% increase from the previous year.
The investigation remains active, with the FBI and IRS Criminal Investigation working alongside FBI field offices in Los Angeles and Miami to track down additional suspects and recover stolen assets.
Of the thirteen total defendants charged so far, twelve face RICO conspiracy charges. Nine are additionally charged with conspiracy to launder monetary instruments, and eight face conspiracy to commit wire fraud. One defendant, 19-year-old John Tucker Desmond, is charged with obstruction of justice for allegedly destroying evidence.
The seized assets in the case include multiple luxury vehicles, designer clothing, expensive watches, champagne, and various other high-end goods purchased with the proceeds of the thefts.
