US crypto scammers who blew $240M in bitcoin face justice
A gang that stole $240M in bitcoin and splurged on luxury now faces prison as FBI closes in.
A group of young cybercriminals who pulled off one of the largest cryptocurrency heists in U.S. history are now facing the consequences of their lavish spending spree. The August 2024 theft netted over 4,100 bitcoin, worth more than $240 million at the time, from a Washington, D.C., resident through a sophisticated social engineering attack.
The alleged ringleader, 22-year-old Malone Lam, and his associates — mostly in their late teens or early 20s — celebrated by buying fleets of sports cars, renting mansions in Miami and the Hamptons, and dropping hundreds of thousands of dollars at nightclubs. Lam alone spent over $569,000 in one evening at a Los Angeles club.
Their spending spree lasted about a month before FBI agents arrested Lam and others. Lam, a Singapore native who dropped out of school in eighth grade, is scheduled for a plea agreement hearing on Tuesday. If convicted, he would be the 11th of 18 defendants to plead guilty in the case.
The scheme began when the victim received calls from people posing as Google and Gemini exchange representatives, warning of account breaches. They tricked him into revealing security codes, allowing the gang to siphon his bitcoin. The stolen funds were laundered through multiple exchanges and converted to cash.
The gang's downfall came when one member, Jeandiel Serrano, failed to hide his IP address while setting up an exchange account. Investigators traced it to a rented mansion in California. Serrano was arrested at Los Angeles International Airport wearing a $500,000 watch.
Lam was arrested at a Miami mansion after an off-duty officer tipped him off. Authorities found $37 million in stolen crypto at another member's apartment. One co-conspirator, Veer Chetal, had gifted a Lamborghini to his parents and hidden $500,000 in cash in their laundry machine.
The case highlights a growing trend of crypto fraud. FBI complaints about cryptocurrency investment scams rose nearly 50% in 2025, even as the Justice Department disbanded its dedicated crypto crime unit. Cybersecurity researcher Allison Nixon warns that without more resources, such crimes will spread.
Several co-conspirators have already been sentenced. Two money launderers received about six years in prison, while one defendant who destroyed evidence got probation. The judge in Lam's case, Colleen Kollar-Kotelly, rejected excuses of youth, saying "Being young only goes so far."