Twelve individuals have been charged in connection with a sprawling $263 million crypto crime spree, which included the theft of 4,100 Bitcoin from a Genesis creditor last August. This was just one among a string of burglaries and money laundering operations being uncovered.
The new defendants were added in a superseding indictment that builds upon charges originally filed against the primary suspect, Malone Lam, on September 19, 2024, the U.S. Department of Justice (DOJ) announced in a statement released May 15.
Jeandiel Serrano, named in the original indictment, was notably absent from the superseding one. According to the DOJ, several of the newly charged individuals have already been arrested, while two are believed to be residing in Dubai.
Most of the suspects using aliases like “Goth Ferrrari” and “The Accountant”—hail from California and are between 18 and 22 years old. The group allegedly started in October 2023 as friends playing online games, eventually evolving into what the DOJ characterizes as a “cyber-enabled racketeering conspiracy.”
Hacking, burglary, and laundering
According to prosecutors, members of the ring had distinct roles: some hacked into databases and cold-called crypto holders in elaborate social engineering schemes, while others physically burgled homes to steal hardware wallets containing cryptocurrency.
The DOJ claims the operation netted a total of $263 million, with a staggering $230 million coming from a single theft on August 18, 2024. On that day, Lam allegedly obtained 4,100 Bitcoin (BTC $103,989) by fraudulent means.
The indictment further alleges that Lam hacked into a victim’s iCloud account to monitor their location, enabling co-defendant Marlon Ferro to physically break into their home and steal crypto hardware wallets.
To obscure the trail, the group used virtual private networks (VPNs), crypto mixing protocols, and exchanges employing “peel chains” a laundering method in which funds are gradually transferred through a series of wallets, with small portions siphoned off at each step.
The group faces charges under the RICO Act (Racketeer Influenced and Corrupt Organizations), as well as for wire fraud and money laundering.
Gone in 60 seconds
The accused allegedly spent their illicit gains on lavish lifestyles. According to the DOJ, funds were used for nightclub services costing up to $500,000 per night, 28 exotic cars including models worth as much as $3.8 million, along with high-end handbags, luxury watches, and designer clothing.
They also rented homes and private jets using falsified identity documents to support their extravagant living.
