DOJ Charges 12 in $263M Bitcoin Theft Case

The Department of Justice (DOJ) has charged 12 individuals in connection with a massive $263 million Bitcoin theft case. The charges were announced through a four-count superseding indictment unsealed in U.S. District Court on May 15, 2025. The defendants, who come from various countries, are facing racketeering conspiracy charges that took place both in the U.S. and abroad. Some of the individuals were apprehended in California, while authorities believe two more suspects are currently in Dubai.

U.S. Attorney Pirro, along with FBI Special Agent in Charge Ryan and IRS-Criminal Investigation Executor Carter, provided details of the charges. The indictment includes charges of RICO conspiracy, wire fraud conspiracy, money laundering, and obstructing justice against Conor Gills. The theft, which occurred in August 2024, involved Malone Lam and Jeandiel Serrano allegedly stealing $230 million in crypto from a victim in Washington, D.C. The project's focus on high-value cryptocurrency users indicates that a large number of people were affected.

The group is accused of using advanced methods to launder their illicit funds. These methods included mixing cryptocurrencies, using multiple wallets to obscure their activities, and employing VPNs to hide their actions. The stolen crypto funds enabled the conspirators to live extravagantly. They reportedly spent up to half a million dollars per night in nightclubs, purchased luxury timepieces ranging from $100,000 to $500,000, and accumulated 28 unique automobiles priced between $100,000 and $3.8 million. Additionally, they acquired some of the best homes in Los Angeles, the Hamptons, and Miami, along with private jets and security crews.

The prosecution outlines extensive money laundering activities by the group. Kunal Mehta, Hamza Doost, Joel Cortez, and Evan Tangeman are charged with providing unlicensed services to convert cryptocurrencies to cash. They rented properties using fake documents, organized private jet flights with the stolen money, and hid their cars through fake firms. Investigators discovered that the conspirators moved cash nationwide by concealing the money inside Squishmallow toys, with each shipment containing about $25,000.

Even after his imprisonment in September 2024, one of the commanders, Malone Lam, continued to oversee activities. While on pretrial detention, he allegedly instructed his group to collect the stolen cryptocurrency and purchase Hermes Birkin bags, which were then delivered in person to his girlfriend in Miami. The group also spent heavily on expensive handbags and ritzy clothing, often giving them out at parties in nightclubs as a strategy to display wealth and influence using money that wasn’t theirs.

This investigation is being handled by the FBI’s Washington, Los Angeles, and Miami offices, as well as the IRS-Criminal Investigation unit. The DOJ emphasized that receiving an indictment does not mean anyone is guilty, and all defendants are considered innocent until convicted by a court. The case is part of the increasing number of cryptocurrency cases handled by the DOJ, which has recovered $20 million of misused funds connected to the Malaysian fraud case.