DOJ Indicts 12 in $263M Crypto Crime Conspiracy, Charges Tornado Cash Co-Founder

The US Department of Justice (DOJ) has indicted 12 additional defendants as part of a conspiracy involved in crypto crimes worth $263 million. The defendants are accused of working with Malone Lam, who was arrested last September. The group’s actions primarily involved social engineering scams, but members also stand accused of burglary. Additionally, the DOJ has pressed charges against Roman Storm, the co-founder of Tornado Cash.

The DOJ’s indictments reveal a sophisticated cyber-enabled racketeering conspiracy that operated both within the United States and abroad. The defendants allegedly played various roles, including database hackers, organizers, target identifiers, callers, money launderers, and residential burglars targeting hardware virtual currency wallets. The group’s leader, Malone Lam, was arrested last September and is accused of organizing the entire crime ring, targeting victims, employing scams, and laundering money. Despite Lam’s arrest, the group’s money laundering techniques allowed them to continue benefiting from their illicit activities.

The bulk of the $263 million stolen came through social engineering and similar scam methods. The group systematically stole and purchased databases of crypto users, identified valuable targets, and attempted to defraud them. Lam personally scammed $230 million from one victim alone. However, the group soon moved on to more brute-force methods, including burglaries. Specifically, the DOJ accused the defendants of remotely monitoring a target’s iCloud metadata while a co-conspirator burglarized his home to steal hardware wallets.

The indictments named 10 of the 12 co-defendants, claiming that several of them have been arrested. At least two remain anonymous and at large, believed to be living in Dubai. The DOJ has demonstrated its resolve on several crypto crimes today, announcing that it would indeed be pressing charges against Roman Storm, co-founder of Tornado Cash. Although crypto enforcement has been loosened somewhat, the Department of Justice is still determined to prosecute prominent offenders.

This case highlights the DOJ’s ongoing efforts to combat high-level crypto crime, despite recent regulatory reforms that have loosened enforcement in some areas. The indictments serve as a reminder that the DOJ remains committed to prosecuting serious offenses in the crypto space, including those involving sophisticated money laundering techniques and violent thefts. The case against Malone Lam and his co-conspirators, as well as the charges against Roman Storm, underscore the DOJ’s determination to hold prominent offenders accountable for their actions.