The U.S. Department of Justice sentenced members of a $263 million cryptocurrency fraud ring to 70 months in prison for alleged social engineering fraud and money laundering involving luxury spending.

The U.S. Department of Justice (DOJ) announced that Evan Tangeman, a 22-year-old California man, has been sentenced to 70 months (approximately 5 years and 10 months) in prison, with an additional 3-year supervised release period, for his involvement in a criminal organization that stole approximately $263 million in crypto assets through social engineering fraud and burglary. According to the indictment, Tangeman pleaded guilty in December 2025 to assisting the criminal network in laundering at least $3.5 million in illicit funds. The group is accused of using the stolen money for luxury spending, including multi-million dollar nightclub bills, Lamborghini sports cars, and Rolex watches. U.S. Attorney Jeanine Pirro of the District of Columbia stated in a press release that the organization “built its criminal system on an almost absurd level of greed,” emphasizing that Tangeman not only participated in money laundering but also destroyed evidence after his accomplices were arrested, demonstrating a clear criminal intent. This sentencing comes as data shows that the crypto industry lost $482 million in the first quarter of 2026 due to fraud and hacking, with social engineering fraud and offline violent robberies on the rise. (Cointelegraph)