Bitcoin Bandits Busted: DOJ Charges 12 In $263 Million Cyber Heist

16 May 2025

in Bitcoin

Reading Time: 3 mins read

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A dozen more suspects have been added to a massive crypto theft case. Based on reports, the new names join Malone Lam, who was first indicted on September 19, 2024. They now face charges tied to stealing 4,100 Bitcoin last August and laundering roughly $263 million.

Group Faces Federal Racketeering Charges

According to the Department of Justice, the superseding indictment brought on May 15, 2025, adds 12 people to the original case against Lam. All are from California and most are between 18 and 22 years old.

Kyrgyzstan Pushes Bitcoin Reserve With State Mining Plan

10 September 2025

Is The Bitcoin Bull Market Over? Pundit Warns Investors Of 30-Day Window To Take Profit

10 September 2025

One earlier defendant, Jeandiel Serrano, was dropped from the updated filing. The DOJ says some of those charged are behind bars, while two are believed to be living in Dubai.

[crypto-donation-box]

Additional 12 Defendants Charged in RICO Conspiracy for over $263 Million Cryptocurrency Thefts, Money Laundering, Home Break-Ins

🔗https://t.co/5jPyk1XN6A@USAttyPirro @FBIWFO @IRS_CI @FBILosAngeles @FBIMiamiFL pic.twitter.com/WLP84c0bZp

— U.S. Attorney DC (@USAO_DC) May 15, 2025

Online Games To Real-World Theft

Based on reports, this ring started as a group of friends playing online video games in October 2023. They then moved on to hacking databases and making cold calls to trick crypto holders into handing over access.

According to investigators, Lam even hacked a victim’s iCloud to track their movements, and a partner nicknamed “The Accountant” or “Goth Ferrrari” would break into homes to steal hardware wallets.

Crypto and cybercrimes are on the rise. Image: rdaniluk/stock.adobe.com

Bitcoin & Money Laundering Network Exposed

The DOJ says the stolen proceeds—more than $230 million from a single incident on August 18, 2024—were run through VPNs, crypto mixers and peel‑chain tactics.

A peel chain works by shifting funds through many wallets and peeling off small amounts each time. Those steps made it harder for law enforcement to trace the money, officials noted.

Lavish Spending On Stolen Funds

Based on reports, the suspects blew the gains on high‑end nightlife, exotic cars and luxury goods. They spent as much as $500,000 in one night at clubs.

They rented 28 exotic cars—some valued at $3.8 million each—and bought designer bags, watches and clothes. Fake IDs were used to rent homes and private jets, all paid for with the stolen Bitcoin.

Total crypto market cap at $3.28 trillion on the daily chart: TradingView.com

A Growing Emphasis On Crypto Security

This case illustrates how rapidly tech‑savvy youngsters can become criminals. It indicates that hardware wallets require good physical security and that digital accounts must employ multi‑factor authentication more than SMS.

Crypto owners must be cautious against uninitiated support calls and employ services that lock down iCloud and email accounts.

Next Steps In The Prosecution

All defendants are charged under RICO and face counts of wire fraud and money laundering. Court records show they could get decades in prison if convicted.

The DOJ says this superseding indictment sends a clear message: no matter how complex the scheme, law enforcement can break it apart.

Featured image from Outseer, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.

Source link