DOJ Charges $236M Crypto Crime Ring That Spent Millions at Nightclubs
The post DOJ Charges $236M Crypto Crime Ring That Spent Millions at Nightclubs appeared on BitcoinEthereumNews.com.
In brief Twelve more defendants have been charged in a sweeping cyber-fraud case. The alleged cybercrime ring laundered crypto through mixers, shell companies, and stuffed toys. It comes as the FBI reported crypto investment fraud had spiked to $5.8B in losses last year. U.S. prosecutors have charged 12 more people in connection with a cybercrime ring that allegedly stole more than $263 million in crypto through a sophisticated social engineering and hacking operation and spent the proceeds on expensive cars, nightclub blowouts, and luxury goods. The charges, unsealed Thursday in a four-count indictment against Malone Lam, 20, and Jeandiel Serrano, 21, were announced by the U.S. Attorney’s Office for the District of Columbia, the FBI, and IRS Criminal Investigation. Serrano is not in the new indictment. Alongside Lam, the new suspects include both U.S. citizens and foreign nationals, with arrests made in California and warrants issued for two individuals believed to be in Dubai. All but one are aged between 18 and 21, with two defendants’ identities not known beyond their online monikers. Of the thirteen, twelve defendants are charged with RICO conspiracy, nine have an additional charge of conspiracy to launder monetary instruments, and eight conspiracy charges to commit wire fraud. A final defendant, 19-year-old John Tucker Desmond, is charged with obstruction of justice for destroying evidence. The case comes amid a broader surge in cybercrime. The FBI’s Internet Crime Complaint Center reported $16.6 billion in internet crime losses in 2024, up 33% from the year prior. Crypto-related fraud made up a significant chunk, with 149,686 complaints. Funds lost totaled more than $9.3 billion in losses, up 66% over 2023. Spending spree According to the indictment, the group operated from at least October 2023 through March 2025, initially bonding over online gaming platforms. Members assumed various roles, from database…
Filed under: News - @ May 16, 2025 6:29 am