DOJ charges 12 more gamer-turned $263M Bitcoin robbers

A major cryptocurrency crime spree resulting in the theft of 4,100 Bitcoin (worth approximately $263 million) has led to the indictment of twelve individuals. This superseding indictment, announced by the Department of Justice (DOJ) on May 15, expands upon the initial charges filed against Malone Lam on September 19, 2024. The new indictments include a diverse group of alleged accomplices, many operating under aliases such as “Goth Ferrrari” and “The Accountant,” primarily based in California and aged between 18 and 22.

The criminal enterprise, originating in October 2023, initially comprised friends connected through online gaming. However, their activities escalated into a sophisticated “cyber-enabled racketeering conspiracy,” encompassing a wide range of illicit activities. The group allegedly engaged in hacking databases, employing social engineering techniques such as cold-calling to target cryptocurrency holders, and even physically burglarizing residences to steal hardware wallets containing cryptocurrency.

The stolen funds were laundered using sophisticated methods to obscure their origin. These methods included virtual private networks (VPNs), cryptocurrency mixer protocols, and “peel chains”—a money laundering technique involving multiple wallet transfers with small amounts peeled off at each step to complicate tracing. A significant portion of the stolen funds, over $230 million, stemmed from a single incident on August 18, 2024, where Lam allegedly fraudulently obtained the 4,100 BTC from a victim. The DOJ alleges Lam also hacked into a victim’s iCloud account to monitor their movements, while defendant Marlon Ferro allegedly burglarized the victim’s home to steal crypto hardware wallets.

The indictment charges the defendants with violations under the RICO Act (Racketeer Influenced and Corrupt Organizations Act), along with offenses related to wire fraud and money laundering. The proceeds from the crimes funded an extravagant lifestyle, including substantial spending at nightclubs (up to $500,000 per night), the purchase of 28 luxury vehicles (with some costing as much as $3.8 million), and the acquisition of high-end handbags, watches, and clothing. The group also allegedly used false identities to rent homes and jets. Several defendants have been arrested, while two are believed to be residing in Dubai. Jeandiel Serrano, initially named in the indictment, was not included in the superseding charges.