DOJ Adds 12 Suspects to Crypto Theft Case, Seizes $263 Million

On May 15, 2025, the Department of Justice (DOJ) added 12 new suspects to an ongoing case involving a massive cryptocurrency theft. The original case, which began with the indictment of Malone Lam on September 19, 2024, now includes charges related to the theft of 4,100 Bitcoin in August 2024 and the laundering of approximately $263 million. The new defendants, all from California and mostly between 18 and 22 years old, face federal racketeering charges, wire fraud, and money laundering.

One of the earlier defendants, Jeandiel Serrano, was dropped from the updated filing. The DOJ reported that some of the charged individuals are currently in custody, while two are believed to be residing in Dubai. The group, which initially started as a group of friends playing online video games in October 2023, transitioned to hacking databases and making cold calls to deceive crypto holders into giving up their access.

Investigators revealed that Lam hacked a victim’s iCloud to monitor their movements, while a partner known as “The Accountant” or “Goth Ferrari” would break into homes to steal hardware wallets. The stolen proceeds, totaling over $230 million from a single incident on August 18, 2024, were laundered through VPNs, crypto mixers, and peel-chain tactics. Peel chains involve shifting funds through multiple wallets and peeling off small amounts each time, making it difficult for law enforcement to trace the money.

The suspects reportedly spent their ill-gotten gains on lavish lifestyles, including high-end nightlife, exotic cars, and luxury goods. They spent as much as $500,000 in one night at clubs, rented 28 exotic cars valued at up to $3.8 million each, and purchased designer bags, watches, and clothes. Fake IDs were used to rent homes and private jets, all paid for with the stolen Bitcoin.

This case highlights the rapid evolution of tech-savvy young individuals into criminals and underscores the importance of robust security measures for hardware wallets and digital accounts. Crypto owners are advised to be cautious against unsolicited support calls and to employ services that lock down iCloud and email accounts. The DOJ’s superseding indictment sends a clear message that law enforcement can dismantle even the most complex criminal schemes.

All defendants face charges under the Racketeer Influenced and Corrupt Organizations Act (RICO) and could receive decades in prison if convicted. The DOJ emphasized that this case serves as a warning to potential criminals that their schemes will be uncovered and prosecuted, regardless of their complexity.