DOJ Charges $236M Crypto Crime Ring That Spent Millions at Nightclubs

American prosecutors accused 12 other people in connection with cyber crime, which allegedly stole crypto more than $ 263 million through sophisticated social engineering and hackering and spent the proceeds for expensive cars, outbreaks of night clubs and luxury goods.

The feesNot closed on Thursday at the four number of indictment against Malone Lam (20 years) and Jeandiel Serrano, 21, were announced by the US Law Authority for the Columbia, FBI and IRS criminal investigations. Serrano is not in new accusation.

Together with Lam, new suspicious citizens of the US and foreign nationals, and arrests in California and orders issued for two individuals, which are expected to be in Dubai.

Everyone except one is between the ages of 18 and 21, and the identities of two defendants were not known outside their online monikers.

For the age of thirteen, twelve defendants are accused of Rico conspiracy, nine have a surcharge for conspiracy for washing currency instruments and eight fees for plotting for committing fraud with wires.

The final defendant, 19 -year -old John Tucker Desmond, is charged with an obstacle to justice for the destruction of evidence.

The case comes in the middle of a wider increase in computer crime. In 2024, the FBI Internet Crime Center showed $ 16.6 billion to lose from Internet crime, 33% compared to the previous year.

Crypto-related frauds formed a significant piece with 149,686 complaints. Lost resources total More than $ 9.3 billion in losses, which is 66% more than 2023.

Spending

According to indictmentThe group operated from at least from October 2023 to March 2025 and initially combined online gaming platforms.

Members have taken various roles, from database hackers and target identifiers to the caller who set out with support agents to cheat on victims and washing, who transformed the stolen crypto into cash.

Member of the Marlon Ferro group (19 years) made a physical burglary to steal a crypt of wallet, including burglary from July 2024 in the House of New Mexico.

The defendants are also accused of washing funds through mixers, Peel, VPN chains and Shell.

The money was used to buy at least 28 exotic cars-from each worth up to $ 3.8 million-pronájmu jet aircraft, several Night Club cards worth half a million, and Hermes girlfriends’ donations for girlfriends.

Mass cash was reportedly sent hidden inside the filled Squishmallows, the popular brand of soft toys.

Members of the group rented luxury houses in Hamptons, Los Angeles and Miami and hired private security guards.

The prosecutors said that forfeited assets include Lamborghinis, Ferraris, Rolls-Royces, Designer Clothing and watch, champagne and yellow teeth grill.

The defendant and the “organizer” of LAM reportedly continued their orchestration of activities, albeit in preliminary detention, directing collaborators to supply luxury goods to his partner.

The investigation continues with the support of the FBI office in Los Angeles and Miami.

Edited Sebastian sinclair