US DOJ Charges 12 More in $263M Bitcoin Theft and Laundering Case
- DOJ links 12 suspects to $263M crypto theft and laundering scheme.
- The group used stolen BTC to fund lavish lifestyles and global fraud.
DOJ has filed additional charges against 12 individuals involved in a wide-ranging crypto crime operation. The group is accused of stealing $263 million, including 4,100 Bitcoin, from a Genesis creditor in August 2024. These charges, announced on May 15, extend the original indictment filed against Malone Lam in September 2024.
The new indictment details an advanced plan that led to social engineering, stealing data, and burglary. The perpetrator used many ways to get into victims’ crypto wallets, among them pretending to be support agents and monitoring their targets. The DOJ acknowledged that some members have been arrested. However, two individuals are still free and thought to be in Dubai.
Most of the suspects are from California and are between 18 and 22 years old. Using aliases like “Goth Ferrari” and “The Accountant,” the group allegedly evolved from an online gaming community into what the DOJ described as a “cyber-enabled racketeering conspiracy.”
DOJ Details Crypto Theft, Hacks, and Laundering Tactics
Among the most notable thefts was a single event on August 18, 2024, when Lam reportedly stole over 4,100 Bitcoin. The DOJ stated Lam hacked into a victim’s iCloud account to monitor movements, while Marlon Ferro later burglarized the victim’s home to steal crypto hardware wallets.
To hide the stolen funds, the group used multiple tools and services. These included virtual private networks (VPNs), crypto mixers, and peel chain transactions. Peel chains are a method of laundering crypto by moving small amounts through many wallets, making transactions harder to trace.
Prosecutors have charged the suspects under the Racketeer Influenced and Corrupt Organizations (RICO) Act. They also face wire fraud and money laundering counts. The group’s activities reportedly began in October 2023 and expanded in scale and complexity over the months.
DOJ Uncovers Lavish Spending by Crypto Theft Ring
The DOJ said the stolen funds were used to support high-end lifestyles. The suspects spent heavily on luxury goods, including $500,000 nightclub visits and 28 exotic cars valued up to $3.8 million. Other purchases included designer clothing, handbags, and expensive watches. Some members also used fake identities to rent luxury homes and private jets.Authorities are still working on the investigation, trying to find more suspects and recover the stolen goods. Moreover, 25 people were recently arrested by South Korean authorities for running fake cryptocurrency schemes designed to mislead investors. This is fueling growing concerns about the rise of cryptocurrency-related crime globally.
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US DOJ Charges 12 More in $263M Bitcoin Theft and Laundering Case
- DOJ links 12 suspects to $263M crypto theft and laundering scheme.
- The group used stolen BTC to fund lavish lifestyles and global fraud.
DOJ has filed additional charges against 12 individuals involved in a wide-ranging crypto crime operation. The group is accused of stealing $263 million, including 4,100 Bitcoin, from a Genesis creditor in August 2024. These charges, announced on May 15, extend the original indictment filed against Malone Lam in September 2024.
The new indictment details an advanced plan that led to social engineering, stealing data, and burglary. The perpetrator used many ways to get into victims’ crypto wallets, among them pretending to be support agents and monitoring their targets. The DOJ acknowledged that some members have been arrested. However, two individuals are still free and thought to be in Dubai.
Most of the suspects are from California and are between 18 and 22 years old. Using aliases like “Goth Ferrari” and “The Accountant,” the group allegedly evolved from an online gaming community into what the DOJ described as a “cyber-enabled racketeering conspiracy.”
DOJ Details Crypto Theft, Hacks, and Laundering Tactics
Among the most notable thefts was a single event on August 18, 2024, when Lam reportedly stole over 4,100 Bitcoin. The DOJ stated Lam hacked into a victim’s iCloud account to monitor movements, while Marlon Ferro later burglarized the victim’s home to steal crypto hardware wallets.
To hide the stolen funds, the group used multiple tools and services. These included virtual private networks (VPNs), crypto mixers, and peel chain transactions. Peel chains are a method of laundering crypto by moving small amounts through many wallets, making transactions harder to trace.
Prosecutors have charged the suspects under the Racketeer Influenced and Corrupt Organizations (RICO) Act. They also face wire fraud and money laundering counts. The group’s activities reportedly began in October 2023 and expanded in scale and complexity over the months.
DOJ Uncovers Lavish Spending by Crypto Theft Ring
The DOJ said the stolen funds were used to support high-end lifestyles. The suspects spent heavily on luxury goods, including $500,000 nightclub visits and 28 exotic cars valued up to $3.8 million. Other purchases included designer clothing, handbags, and expensive watches. Some members also used fake identities to rent luxury homes and private jets.Authorities are still working on the investigation, trying to find more suspects and recover the stolen goods. Moreover, 25 people were recently arrested by South Korean authorities for running fake cryptocurrency schemes designed to mislead investors. This is fueling growing concerns about the rise of cryptocurrency-related crime globally.
Highlighted Crypto News Today:
Abu Dhabi’s Mubadala Increases BlackRock Bitcoin ETF Holdings to Over $408M
Read More