DOJ Charges 12 More in $263M Crypto Theft Scheme

The U.S. Department of Justice (DOJ) has charged a dozen new defendants under the Racketeer Influenced and Corrupt Organizations (RICO) Act for their alleged involvement in a multimillion-dollar cryptocurrency theft. This latest development brings the total number of individuals accused in the scheme to 14. The defendants are accused of participating in a crypto racketeering conspiracy that resulted in the theft of $263 million. The majority of the defendants have been arrested, but two remain at large and are believed to be in Dubai.

The charges include RICO conspiracy, conspiracy to commit wire fraud, money laundering, and obstruction of justice. The investigation began last September when two California men, Malone Lam and Jeandiel Serrano, were arrested and charged in connection with the plot. Authorities allege that the duo stole 4,100 Bitcoin (BTC), valued at approximately $230 million at the time, from an unnamed victim in Washington, D.C. The stolen funds were then laundered using advanced techniques to obfuscate their origin.

According to the DOJ's press release, Lam and Serrano were not acting alone. They had a team composed of hackers, organizers, money launderers, callers, and residential burglars who targeted hard wallets. The group met through online gaming platforms and had been operating since October 2023. The indictment reveals that the defendants used the stolen funds to purchase luxury items, including homes, cars, handbags, watches, jewelry, and private security guards. They also spent up to $500,000 per evening at nightclubs and used private jets for travel.

The defendants' lavish spending and use of advanced money laundering techniques highlight the sophistication of the operation. The DOJ's decision to charge the defendants under the RICO Act indicates the severity of the allegations and the potential for significant penalties if found guilty. The court will determine the sentences based on sentencing guidelines, which could include lengthy prison terms and substantial fines.

This case underscores the growing concern over cryptocurrency-related crimes and the need for robust legal frameworks to combat such activities. The DOJ's aggressive pursuit of those involved in this conspiracy sends a clear message that such criminal activities will not be tolerated. The ongoing investigation and prosecution of these defendants serve as a reminder of the importance of vigilance and cooperation between law enforcement agencies and the cryptocurrency community to prevent and address such crimes.