Feds Nab 12 in $236M Crypto Heist—Because Even Crime Goes Digital Now

Another day, another nine-figure crypto scam. The DOJ just unsealed indictments against a dozen suspects in a $236 million scheme—proving once again that where there’s blockchain, there’s someone trying to game it.

Details are still emerging, but here’s the kicker: these weren’t some basement-dwelling hackers. Court docs suggest a sophisticated operation with money laundering channels slicker than your average hedge fund’s offshore strategy.

Meanwhile, Wall Street still can’t decide if crypto is the future of finance or a Ponzi scheme. Maybe both?

DOJ charges 12 more individuals from a cybercrime ring

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

The DOJ said the superseding indictment adds charges originally brought against Malone Lam on September 19, 2024.

The additional individuals arrested alongside Lam include U.S. citizens and foreign nationals. Arrests were made in California, and warrants were issued for two individuals believed to be in Dubai. The indictment noted that all but one are aged between 18 and 21, with two defendants’ identities unknown beyond their online pseudonyms. The indictment revealed that the members held different responsibilities, including database hackers, organizers, target identifiers, callers, money launderers, and residential burglars targeting hardware VIRTUAL currency wallets.

Of the thirteen defendants, twelve face RICO conspiracy charges, nine have an additional charge of conspiracy to launder monetary instruments and eight face conspiracy charges to commit wire fraud. One last defendant, 19-year-old John Tucker Desmond, is charged with obstruction of justice for destroying evidence.

The indictment alleged that the gang laundered the stolen virtual currency proceeds by moving funds through various mixers and exchanges using peel chains, pass-through wallets, and virtual private networks to mask their true identities.

The indictment revealed that gang members used the stolen digital assets to purchase nightclub services ranging up to $500,000 per evening, luxury handbags they gave away at nightclub parties, and luxury watches and clothing. The enterprise also spent the funds on rental homes in Los Angeles, the Hamptons, and Miami, private jet rentals, a team of private security guards, and a fleet of at least 28 exotic cars, some valued up to $3.8 million.

Indictment notes various crimes committed by the gang

The prosecutors alleged that in one instance, on August 18, 2024, Malone Lam contacted a victim in D.C. and fraudulently obtained over 4,100 Bitcoin (worth over $230M at the time). The defendant is also accused of another instance in July 2024, where he and others stole over $14 million in digital currencies from an additional victim.

One gang member, Marlon Ferro, 19, is also accused of committing home break-ins to steal hardware cryptocurrency wallets. The indictment noted that in one instance, Ferro traveled to New Mexico in July 2024 and broke into a victim’s home to steal their hardware digital asset wallet, while Lam monitored the victim’s location by logging into his iCloud account.

The authorities accused Kunal Mehta, Hamza Doost, Joel Cortez, and Evan Tangeman of allegedly engaging in unlicensed crypto-to-cash services for the gang. The indictment noted that the individuals obtained luxury rental homes for enterprise members using fake identity documents, booked private jet travel with the stolen crypto for the gang, and concealed ownership of exotic cars by registering them in shell company names. The gang also shipped bulk cash through U.S. mail to enterprise members hidden in Squishmallows stuffed animals.

Lam is also alleged to have continued working with the gang while in pretrial detention after his arrest in September 2024. The indictment alleged that Lam worked with members to pass and receive directions, collect stolen virtual assets, and have enterprise members buy luxury Hermes Birkin bags and hand deliver them to his girlfriend in Miami, Florida.

Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites