The U.S. Department of Justice (DOJ) has charged 12 more individuals in connection with a major cryptocurrency theft operation that netted more than $263 million, deepening a case that already named alleged ringleader Malone Lam as a defendant. The charges, outlined in a superseding indictment, reveal a complex web of digital fraud, identity theft, and money laundering spanning multiple states and countries.
The newly accused individuals are part of a group that reportedly evolved from online gaming circles into a full-fledged cybercrime ring. According to the DOJ, the suspects — mostly from California and aged between 18 and 22 — used their technical skills and online connections to orchestrate a sophisticated criminal enterprise targeting high-net-worth cryptocurrency holders.
Targeted Hacking and Social Engineering
The indictment details how members of the group used SIM-swapping, phishing, and social engineering techniques to gain control of victims’ mobile numbers, emails, and crypto exchange accounts. In some cases, they even burglarized homes to steal physical crypto hardware wallets, often after tracking victims through their online accounts.
The largest single theft occurred on August 18, 2024, when Lam allegedly defrauded a Genesis creditor by stealing 4,100 Bitcoin, valued at over $230 million at the time. Authorities say he accessed the victim’s iCloud to monitor their movements before coordinating a break-in to steal their crypto assets.
To conceal their activity, the group used Virtual Private Networks (VPNs), crypto mixers, and peel chains — a method of breaking down and transferring stolen funds across multiple wallets to obscure the transaction trail.
Lavish Lifestyles Funded by Crypto Theft
Prosecutors revealed that the stolen crypto was used to fund a lavish and reckless lifestyle. Defendants allegedly purchased 28 luxury vehicles, spent hundreds of thousands on nightclub outings, and rented private jets and high-end properties using fake IDs. Some nights reportedly included expenses of up to $500,000.
The DOJ noted that some of the suspects operated under aliases such as “The Accountant” and “Goth Ferrari”, maintaining a low profile in the real world while flaunting wealth online.
Global Reach and Ongoing Investigation
While several of the accused have already been arrested in the United States, authorities believe at least two suspects are residing in Dubai. The DOJ emphasized that the case remains active, with further arrests and charges possible as investigators work with international law enforcement agencies to trace remaining stolen funds.
The defendants now face charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act, along with multiple counts of wire fraud, identity theft, computer intrusion, and money laundering.
“This case underscores how cybercriminals are evolving,” a DOJ spokesperson said. “What began as a group of online gamers turned into an organized and highly damaging cybercrime syndicate.”