Feds Smash $263M Crypto Crime Syndicate—DOJ Slams RICO Charges on 12

US prosecutors just dropped the hammer on an alleged quarter-billion-dollar crypto racket—turns out blockchain isn’t as untraceable as the ’anon’ crowd claims.

Subheader: RICO Meets DeFi

The Department of Justice dragged 12 suspects into court under organized crime statutes usually reserved for mafia cases. Alleged schemes included pump-and-dumps, darknet market ops, and laundering through—wait for it—over-the-counter ’privacy coins.’

Subheader: Compliance Officers Rejoice

While the bust proves regulators can follow the money trail, it also highlights how crypto’s wild west days are numbered. Next up: Wall Street banks offering ’blockchain compliance’ consulting at $1,200/hour.

Crime syndicate loots $236 million with social engineering, home invasions and crypto fraud

The U.S. Department of Justice has charged 12 individuals in a sweeping criminal indictment alleging a multi-state racketeering conspiracy involving over $263 million in stolen cryptocurrency.

The DOJ’s official press release on Thursday details an elaborate pattern of organized crime in crypto, involving digital fraud and physical theft. 

According to prosecutors, the group systematically hacked cryptocurrency databases to gather private user data. Once inside, they allegedly used social engineering tactics such as impersonating banks and exchanges to bypass security and access wallets.

In some cases, they reportedly went as far as burglarizing victims’ homes to retrieve recovery phrases and hardware wallets.

The charges include wire fraud, identity theft, money laundering, and conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO), a legal tool traditionally used against organized crime syndicates.

US DOJ details sophisticated laundering network involving crypto mixers, shell companies, and offshore exchanges

After stealing the funds, the group reportedly used crypto mixers, decentralized protocols, and offshore exchanges to launder the proceeds, making tracing efforts more difficult.

The operation spanned several U.S. states, with the DOJ highlighting it as a case that “reflects the convergence of cybercrime and traditional organized theft.”

Court documents also reveal that victims were selected from leaked exchange databases and attacked using SIM-swapping, phishing, and spoofed support channels. This allowed the perpetrators to reset authentication credentials and drain wallets swiftly.

The U.S. Department of Justice has indicted 12 defendants for RICO conspiracy involving over $263 million in cryptocurrency theft, money laundering, and home burglaries. The defendants allegedly hacked cryptocurrency databases to identify targets, impersonated bank or exchange…

The DOJ says this case sets a precedent for tackling blockchain-era criminal enterprises, and stressed its collaboration with international partners and forensic firms in tracing and recovering stolen funds.

What’s next?

With charges filed, the case will now proceed to trial, where further details of the international laundering networks and tech vulnerabilities may emerge. 

It also raises urgent questions about crypto KYC standards, data leaks, and wallet-level security, especially as institutional adoption grows.