DOJ Charges 12 in Widespread Crypto Crime Ring Targeting U.S. Wallet Holders

Highlights:

• The crypto crime ring stole over $263 million from digital wallets and exchanges.
• The group used hacks, social engineering, and home invasions to access crypto.
• Proceeds funded high-end cars, luxury items, and private jets across the U.S.

Federal authorities have charged 12 people who are suspected to have played a part in a crypto crime ring that stole over $263 million. According to Thursday’s press release, the charges include racketeering, wire fraud, and money laundering, and this case is considered one of the biggest related to crypto so far. The suspects, most of whom were between 18 and 22, worked in various parts of the U.S. and other countries.

The group apparently got to know each other through online games. These online connections started to grow into a big network that mixes computer attacks and regular offline crimes. The network grew and got more popular from October 2023 to March 2025.

The U.S. Department of Justice has indicted 12 defendants for RICO conspiracy involving over $263 million in cryptocurrency theft, money laundering, and home burglaries. The defendants allegedly hacked cryptocurrency databases to identify targets, impersonated bank or exchange…

— Wu Blockchain (@WuBlockchain) May 15, 2025

Coordinated Roles in the Crypto Crime Ring

According to court documents, the people involved in the crypto crime ring each had different jobs. Some were hackers who got into crypto databases that kept private information. Others were able to spot high-value victims by looking through the data that had been stolen. Social engineering was one of the main ways used, where the scammers pretended to be security agents to trick people into giving valuable information.

Some members actually went into the victims’ houses. In one case, a member used the iCloud account of their victim to keep track of their location, and another member got into a hardware wallet to take the money out. The second-biggest crypto fraud happened in July 2024, when around $14 million worth of cryptocurrency was stolen from another person.

The largest single theft happened in August 2024. Malone Lam, who is said to be the main person in charge, managed to get his hands on more than 4,100 Bitcoin, which was worth around $230 million at the time. Lam used a fake phone call to trick the victim into giving him the wallet’s code.

Lavish Spending and Complex Laundering Network

Once stolen, the cryptocurrency was taken through several different ways. The crypto crime ring used mixers, offshore exchanges, and peel chains to hide where the money was coming from. VPNs and shell wallets made it harder for them to be tracked online. Transactions usually ended with people paying in cash, and sometimes large amounts of products were moved in by using stuffed toys like Squishmallows.

Members then used the money to live in a fancy way. The group spent close to $9 million on buying 28 fancy cars, such as Ferraris and Lamborghinis. Nightclub parties can cost as much as $500,000 every single night. They also bought fancy watches, clothes, and new Birkin handbags.

Some properties were rented out using fake papers. Homes in Los Angeles, Miami, and the Hamptons were used as stops for the travels. The group also made sure they traveled by private jets and hired private security to help them stay unnoticed.

Ongoing Investigations and International Reach

Several people were arrested in California this week. However, two of them are thought to still be in Dubai. Lam was arrested in September 2024 but reportedly still gave orders and directions for the group from behind bars. He is said to have used middlemen to send luxury items to his girlfriend.

An off-duty officer told the money exchanger about the investigation, which caused a delay for one suspect trying to come back to the U.S. This informer also told Lam to get rid of his phone, so he ended up dropping it in Biscayne Bay before being arrested.

Federal prosecutors noted that the case highlights how cybercrime and organized theft often blend. In addition, the DOJ is working with other agencies to return funds stolen by fraudsters and make blockchain systems more secure.