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U.S. authorities allege that a network of young men used a social-engineering attack in August 2024 to steal more than $240 million in Bitcoin from a Washington, D.C., resident—one of the largest alleged cryptocurrency thefts in U.S. history. The group allegedly used a sophisticated laundering operation to conceal the proceeds and obscure its digital trail.
The suspects allegedly spent the stolen funds on luxury properties, sports cars, private jets, and private security before FBI agents arrested alleged ringleader Malone Lam about a month after the theft. Lam, a 22-year-old Singaporean, is scheduled for a plea-agreement hearing.
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Fellow conspirator Evan Tangeman received a prison sentence of more than five years for laundering funds stolen by the cryptocurrency-theft enterprise.
On September 9, 2024, the FBI searched Veer Chetal's Brunswick, New Jersey, apartment and recovered $37 million in cryptocurrency allegedly tied to the theft. Chetal subsequently agreed to cooperate with the FBI investigation.
FBI agents arrested Malone Lam, a 22-year-old Singaporean identified as the alleged ringleader, about one month after the theft. Lam was charged with organizing the social-engineering attack against the Washington, D.C., victim.
A network of young men allegedly used a social-engineering attack to steal Bitcoin valued at more than $240 million from a Washington, D.C., resident. The theft was characterized as one of the largest cryptocurrency thefts in U.S. history.
At least nine additional alleged members of the Social Engineering Enterprise pleaded guilty in the Justice Department's takedown of the cryptocurrency theft and laundering operation. The report does not provide individual names or dates for those pleas.
Malone Lam pleaded guilty in U.S. District Court in Washington, D.C., to one count of participating in a RICO conspiracy tied to an international cryptocurrency theft and laundering enterprise valued at more than $245 million. Judge Colleen Kollar-Kotelly accepted the plea and set a status hearing for December 8, 2026.
Alleged Social Engineering Enterprise member Marlon Ferro received a 6.5-year prison sentence. The report says Ferro conducted physical burglaries for the group when its social-engineering operations were insufficient.
Authorities allege the group used a sophisticated laundering scheme to obscure the proceeds and hide digital traces, then spent funds on luxury items and services including sports cars, private jets, security guards, and mansion rentals.
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Evan Tangeman, a 22-year-old from Newport Beach, California, was sentenced to 70 months in prison after pleading guilty to a `RICO` conspiracy tied to a cybercriminal network that stole roughly **$230 million to $260 million** in cryptocurrency from victims. Prosecutors said Tangeman laundered at least **$3.5 million** between October 2023 and May 2025 for the group, which allegedly stole more than **4,100 Bitcoin** from a Washington, D.C., victim in August 2024 and used the proceeds to fund luxury homes, private jets, high-end vehicles, private security, and other lavish purchases. Authorities said the organization, identified by law enforcement as the **Social Engineering Enterprise**, targeted wealthy cryptocurrency holders using stolen and dark-web-sourced data, spoofed phone numbers, impersonation of Google and Gemini support staff, and remote-access tools including **AnyDesk** to obtain Bitcoin Core private keys. Investigators alleged the group then obscured the proceeds through mixers, exchanges, peel chains, pass-through wallets, and VPNs, while Tangeman also helped rent properties under false identities and destroy devices after arrests of key members. Another alleged launderer, **Kunal Mehta**, has also pleaded guilty and is awaiting sentencing.
Jun 29, 2026
A criminal group known as the Social Engineering Enterprise orchestrated large-scale cryptocurrency thefts using social engineering tactics and physical attacks to gain access to victims' digital assets. The group targeted individuals with significant cryptocurrency holdings, either deceiving them into revealing access credentials or physically breaking into their homes to steal devices containing private keys. Law enforcement efforts have led to multiple arrests and guilty pleas, including a California man who admitted to laundering millions in stolen cryptocurrency and facilitating the group's operations by renting luxury properties for their activities. In related developments, a key participant in a $263 million social engineering ring pleaded guilty, and additional members have been indicted and arrested in various locations, including Miami and Dubai. The group's operations began in late 2023 and involved members from the United States and abroad, who coordinated attacks and laundered proceeds through real estate and other means. The ongoing investigation highlights the growing threat of organized cybercrime targeting cryptocurrency holders through both digital and physical means.
Jun 29, 2026
US authorities reported multiple enforcement actions tied to **crypto-enabled crime**. In the Empire Market case, prosecutors said co-creators **Raheim Hamilton** and **Thomas Pavey** designed the dark web marketplace to help users evade law enforcement and launder proceeds; the market allegedly facilitated about **$430M** in transactions (drugs, stolen payment data, counterfeit currency) before disappearing in 2020 in what investigators described as an exit scam that stole an estimated **$30M** in bitcoin. Hamilton pleaded guilty to federal drug conspiracy charges and agreed to forfeit roughly **1,230 BTC** plus **24.4 ETH** and real estate; Pavey previously pleaded guilty and agreed to forfeit about **1,584 BTC** and other assets. Separately, reporting highlighted alleged misuse and laundering of digital assets in other contexts. On-chain investigator **ZachXBT** traced movements from wallets associated with **US-seized crypto** (held under U.S. Marshals Service custodianship) to wallets allegedly linked to **John Daghita**, the son of a federal contractor executive, with claims of roughly **$23M** in diverted cryptocurrency and another wallet holding about **$36M** in Ethereum; ZachXBT said he alerted the **U.S. Marshals Service**. In another DOJ case, **Jingliang Su** (a Chinese national) was sentenced to **46 months** for laundering proceeds from a cryptocurrency investment fraud that authorities said victimized **174** people for **$36.9M**, using social engineering via social media/dating platforms and counterfeit trading sites, with **$26.9M** restitution ordered and multiple US agencies involved in tracing funds and dismantling the network.
Jun 29, 2026