Uncertainty continues to hang over one of the United States’ largest crypto fraud prosecutions, as Singaporean Malone Lam returned to federal court amid signs that a negotiated resolution may still be possible.
Lam, accused by prosecutors of leading a global criminal enterprise that siphoned hundreds of millions of dollars in cryptocurrency, appeared for a status hearing in Washington, DC as his legal team confirmed that plea discussions with the government remain active.
Plea Talks Still Open As Both Sides Seek Resolution
Lam’s lawyer, John Patrick Pierce, told the court that negotiations have not broken down and that both sides remain willing to pursue a deal.
Pierce said,
“We do want to give best efforts at a resolution, and I believe Mr Hart and I can do that in good faith.”
Mr Hart refers to Assistant United States Attorney William Hart.
The government’s most recent plea offer was made in mid-November, though its terms were not disclosed in court.
Lawyers from both sides agreed to return on 12 January 2026 at 9.30am local time (10.30pm, Singapore time) to update the judge on whether progress has been made.
Prosecutor Change As Case Expands Further
The hearing followed a procedural shift in the prosecution team.
A motion was filed a day earlier to formally replace Assistant United States Attorney Kevin Rosenberg, who had led the case since its early stages, with Hart.
The change comes as the case continues to grow in scale.
Since Lam’s last appearance in November, the court has unsealed a Second Superseding Indictment that adds three more defendants, raising the total number of people charged to 17.
More Arrests Linked To Global Crypto Crime Network
The US Department of Justice has charged Nicholas Dellecave, Mustafa Ibrahim and Danish Zulfiqar with RICO conspiracy for their alleged roles in the operation, which prosecutors say involved database hacking, identity deception and large-scale crypto laundering.
Dellecave was arrested in Miami on 3 December 2025.
Zulfiqar and Ibrahim were arrested in Dubai on related charges, according to the Department of Justice.
A Brazen Bitcoin Theft At The Heart Of The Case
Prosecutors say the expanded indictment sheds further light on what they describe as the enterprise’s most audacious crime: the theft of more than 4,100 Bitcoins from a single victim in Washington in August 2024.
At the time, the stolen Bitcoin was worth more than US$230 million.
With the recent rise in crypto prices, its value now exceeds US$350 million.
The indictment alleges that Lam, Zulfiqar and others worked together to carry out the theft and later splurged on the proceeds.
According to the Department of Justice, Lam and “his associates spent over US$4 million in stolen virtual currency at Los Angeles nightclubs”.
How The Social Engineering Scheme Worked
Prosecutors allege that Lam and several co-defendants formed what they call a “Social Engineering Enterprise” in late 2023, built on relationships first formed through online gaming platforms.
The group allegedly targeted individuals known to hold large amounts of cryptocurrency.
Posing as support staff from Google or major crypto exchanges, they convinced victims to hand over passwords, private keys and seed phrases.
With that information, prosecutors say the group accessed victims’ accounts, drained their digital assets, laundered the funds through offshore exchanges and converted them into cash.
In total, the enterprise is accused of stealing more than US$265 million in cryptocurrency.
Prosecutors say the money funded private jet travel, luxury homes, high-end cars and nightclub spending worth millions of dollars.
Co-Conspirators Turn State Witnesses
Nine of Lam’s alleged co-conspirators have already pleaded guilty, increasing the pressure on the accused ringleader.
Among them is Evan Tangeman, a 22-year-old from Newport Beach, California, who admitted to laundering at least US$3.5 million for the group.
These defendants could be called to testify against Lam if the case proceeds to trial.
Access To Evidence Remains A Challenge
While talks continue, Pierce told the court he is moving ahead with arrangements for a court-approved computer to allow Lam to review what he described as an “unwieldy” volume of evidence gathered by investigators.
Lam remains accused of orchestrating a fraud scheme that prosecutors say duped at least seven victims into surrendering control of their cryptocurrency holdings.
Another High-Profile Crypto Fraud Case In Focus
The case unfolds as US courts continue to hand down severe sentences in major crypto scandals.
Do Kwon, a South Korean national and co-founder of Singapore-based Terraform Labs, has been sentenced to 15 years in prison by a New York judge.
Kwon was convicted of orchestrating what prosecutors described as an “epic” fraud linked to the collapse of the TerraUSD stablecoin and its sister token Luna.
The implosion wiped out an estimated US$40 billion in investor funds.
Kwon admitted to misleading investors about TerraUSD’s stability and was among several prominent crypto figures charged in the US following the market crashes of 2022.
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