A superseding indictment unsealed on Thursday in U.S. District Court charged 12 more American and foreign nationals with allegedly taking part in a racketeering scheme that stole over $263 million in cryptocurrency.
Several were arrested this week in California, while two others are believed to be living abroad in Dubai, according to a U.S. Department of Justice release.
The defendants face charges including racketeering conspiracy, conspiracy to commit wire fraud, money laundering, and obstruction of justice. The indictment builds on charges initially filed against Malone Lam in September 2024, following the alleged theft of over 4,100 BTC a month before — worth over $230 million at the time — first disclosed by blockchain sleuth ZachXBT.
Those funds were thought to have been stolen from an early bitcoin investor and creditor of the defunct lending firm Genesis. ZachXBT worked with authorities and security firms Cryptoforensic Investigators and zeroShadow to trace the funds, describing the financial forensic investigation as “one of my best … of all time.”
In a separate July 2024 incident, Lam and others allegedly stole more than $14 million in cryptocurrency from another victim.
How we got here
According to the indictment, the alleged cybercriminal enterprise began as friendships on online gaming platforms and evolved into a sophisticated crypto theft ring, operating from at least October 2023 to March 2025. Members took on specialized roles — from hacking databases and identifying high-value targets to impersonating support staff in phishing calls, laundering funds into U.S. dollars, and even breaking into homes to steal hardware wallets.
The stolen cryptocurrency funded an extravagant lifestyle that included $500,000 per evening nightclub tabs, luxury watches and clothing, private jet rentals, security guards, and a fleet of exotic cars ranging in value from $100,000 to $3.8 million, prosecutors said. To obscure their tracks, the group allegedly used mixers, “peel chains,” VPNs, and fake identities to launder the funds across multiple platforms.
After his September arrest and while in pretrial detention, Lam allegedly continued coordinating with enterprise members to exchange instructions, collect stolen crypto, and have luxury Hermes Birkin bags purchased and hand-delivered to his girlfriend in Miami.
The ongoing investigation is being handled by the U.S. Attorney’s Office for the District of Columbia, the FBI, and the IRS.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Trade Crypto On Coinhub Exchange
Trade Crypto On Coinhub Exchange
Stay ahead of the market by turning news insights into trading opportunities. With Coinhub Exchange, you can seamlessly buy, sell, and manage your digital assets, all in one secure platform. Take advantage of real-time market insights, deep liquidity, and fast execution for your favorite cryptocurrencies. Don’t just read about it — trade crypto now!
Disclaimer
The content of this article shown by Coinhub News, powered by The Block, is for informational purposes only and should not be construed as financial, legal, tax, or investment advice. Coinhub News and its affiliates are not a licensed financial advisor, legal advisor, broker, or tax advisor, and ... should not be considered as professional advice or a recommendation to engage in any specific investment, legal decision, or financial transaction. Cryptocurrency markets are highly speculative and volatile. Readers should perform their own independent research and consult with a qualified professional before making any financial or legal decisions. The opinions expressed in this article are those of the author and do not necessarily represent the views or opinions of the Company of its affiliates. Additionally, the Company does not make any representations or warranties regarding the accuracy, timeliness, reliability, or completeness of any information in this article. By accessing this content, you acknowledge that any reliance on the information contained in this article is solely at your own risk. The Company is not responsible for any financial losses, legal disputes, or other damages that may arise from reliance on this content or from any investment or legal decisions based on the information provided. Investing in cryptocurrencies involves substantial risks, including the risk of losing your entire investment, and you should carefully consider whether it is appropriate for your circumstances.
Read more
