Another 12 people have been charged over a massive crypto theft ring, which at one point stole 4,100 Bitcoin from a single person.
Another 12 people have been charged for their involvement in a $263 million crypto crime spree that stole 4,100 Bitcoin from a Genesis creditor last August, along with a string of break-ins and money laundering.
The 12 new names, included in a superseding indictment, add to charges originally brought against the main defendant in the case, Malone Lam, on Sept. 19, 2024, the Department of Justice noted in a May 15 statement.
Jeandiel Serrano was named a defendant in the initial indictment but was not included in the superseding one.
The DOJ said several defendants have been arrested, while two others are believed to be living in Dubai.
Many of the suspects, with aliases like “Goth Ferrrari” and “The Accountant,” come from California, mostly aged between 18 and 22.
The group allegedly began operating in October 2023, evolving from friends while playing online games to what the DOJ describes as participating in a “cyber-enabled racketeering conspiracy.”
Hacking, burglarizing and laundering
The DOJ said group members were tasked with everything from hacking databases, cold calling crypto holders to conduct social engineering attacks to even burglarizing houses to steal crypto hardware wallets.
Others were involved in laundering the stolen proceeds, which the DOJ claimed amounted to $263 million.
Over $230 million resulted from a single instance on Aug. 18, 2024, when Lam fraudulently obtained over 4,100 Bitcoin
BTC
$102,607
from a victim.
The DOJ said Lam also hacked into another victim’s iCloud account to watch their movements, while defendant Marlon Ferro would break into their house to steal crypto hardware wallets.
Virtual private networks, crypto mixer protocols and exchanges using “peel chains” were used to make it harder to trace the illicit activity, the DOJ said.
A peel chain is a money laundering tactic where crypto is transferred through a series of wallets, with small amounts of funds “peeled off” at each step.
They have been charged with RICO (Racketeer Influenced and Corrupt Organizations) as well as offenses involving wire fraud and money laundering.
Gone in 60 seconds
Members of the crypto theft ring allegedly used proceeds to pay for nightclub services — costing up to $500,000 on some nights — 28 exotic cars as expensive as $3.8 million, in addition to luxury handbags, watches, and clothing.
Homes and jets were even rented out with fake identity documents to fund their lavish lifestyles, the DOJ noted.