A cybercrime ring that allegedly stole over $263 million in cryptocurrency through online deception and hacking is at the centre of a sprawling U.S. Department of Justice (DOJ) investigation, with 12 more individuals now charged.
The group, mainly aged 18 to 21, reportedly ran a sophisticated operation that began on online gaming platforms and later evolved into a global fraud network.
The gang is accused of operating from around October 2023 to March 2025, with its origins tracing back to friendships formed through gaming.
According to the indictment unsealed on 15 May, members took on specific roles, from hackers breaching databases to impersonators tricking victims by posing as customer service agents.
Others allegedly handled stolen funds, identified new targets, and broke into homes to steal hardware wallets.
Among those charged is 20-year-old Malone Lam, previously indicted in September 2024.
The superseding indictment now names 13 defendants, including Lam, and introduces serious charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Authorities say Lam continued to communicate with group members and coordinate the delivery of luxury items from inside pretrial detention.
Prosecutors allege the gang spent the stolen funds on high-end living.
Luxury spending included private jet rentals, security teams, and extravagant nightclub outings with tabs reportedly reaching $500,000 in a single night.
Members bought at least 28 exotic vehicles—some worth up to $3.8 million—and splashed out on designer watches, clothing, and Hermes Birkin bags, which were hand-delivered to associates.
The indictment details how stolen funds were laundered through a complex network of mixers, peel chains, and shell companies.
The group also used fake IDs to rent homes in affluent areas like the Hamptons, Los Angeles, and Miami.
In a bizarre twist, large amounts of physical cash were reportedly shipped through the U.S. postal system stuffed inside Squishmallows, a plush toy brand.
Authorities identified several individuals believed to have played crucial roles.
Among them, 19-year-old Marlon Ferro allegedly committed residential burglaries to steal hardware wallets.
One such incident occurred in New Mexico in July 2024, while Lam remotely tracked the victim’s location via their iCloud account.
Others, including Kunal Mehta, Hamza Doost, Joel Cortez, and Evan Tangeman, are accused of running unlicensed crypto-to-cash conversion operations, booking travel, and registering luxury cars under shell companies to hide their true ownership.
The investigation, supported by the FBI and IRS Criminal Investigation, led to arrests in California, while two suspects are believed to be in Dubai.
Two of the charged individuals have only been identified by their online aliases.
Of the thirteen total defendants, twelve face RICO conspiracy charges, nine are accused of money laundering conspiracy, and eight are charged with conspiracy to commit wire fraud.
One, 19-year-old John Tucker Desmond, faces a separate charge of obstruction of justice for allegedly destroying evidence.
Source: X
The case unfolds as cybercrime incidents rise sharply.
The FBI’s Internet Crime Complaint Center reported $16.6 billion in internet crime losses in 2024, marking a 33% increase from the previous year.
Of that, over $9.3 billion came from crypto-related fraud alone, representing a 66% year-over-year surge with nearly 150,000 complaints.
Investigators say the crypto gang’s crimes included a major theft on 18 August 2024, where Lam allegedly tricked a D.C. victim into handing over more than 4,100 Bitcoin—worth over $230 million at the time.
Another theft in July 2024 netted over $14 million in digital currencies from a separate victim.
The DOJ’s investigation continues, with help from FBI teams in Los Angeles and Miami, as authorities seek to locate suspects still at large and recover stolen digital assets.
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