DOJ Busts Crypto Ring: $263M RICO Scam Fueled Supercars, $500K Parties

A dozen Americans and foreign nationals have been charged by the U.S. Department of Justice (DOJ) this week for engaging in an online racketeering conspiracy that saw $263 million worth of cryptocurrency netted in the crime scheme, as stated in a May 15 press release.

According to the Thursday press release from the United States Attorney’s Office for the District of Columbia, the defendants—all of whom are listed as between the ages of 18 and 21 except one—face charges of RICO conspiracy, conspiracy to commit wire fraud, money laundering, and obstruction of justice.

Additional 12 Defendants Charged in RICO Conspiracy for over $263 Million Cryptocurrency Thefts, Money Laundering, Home Break-Ins

https://t.co/5jPyk1XN6A@USAttyPirro @FBIWFO @IRS_CI @FBILosAngeles @FBIMiamiFL pic.twitter.com/WLP84c0bZp

Federal prosecutors claim that the alleged crime ring, spearheaded by 20-year-old Malone Lam, engineered crypto-oriented cyberattacks in a bid to swindle illicit digital assets from online databases.

“Members of the enterprise held different responsibilities,” a Thursday press release states. “The various roles included database hackers, organizers, target identifiers, callers, money launderers, and residential burglars targeting hardware virtual currency wallets.”

The purported crypto criminals converted the stolen digital assets into fiat currency and used the funds to purchase “nightclub services ranging up to $500,000 per evening” and “luxury handbags valued in the tens of thousands of dollars that were given away at nightclub parties.”

The defendants also purchased “luxury watches valued between $100,000 and $500,000, luxury clothing valued in the tens of thousands of dollars, rental homes in Los Angeles, the Hamptons, and Miami, private jet rentals, a team of private security guards, and a fleet of at least 28 exotic cars ranging in value from $100,000 to $3.8 million.”

“Members of the enterprise laundered stolen cryptocurrency proceeds by moving the funds through various mixers and exchanges using ‘peel chains,’ pass-through wallets, and virtual private networks to mask their true identities,” the press release says.

Prosecutors claim Lam has continued to work with members of the digital asset-focused enterprise to collect donations, obtain stolen crypto, and buy luxury goods for his Miami-based girlfriend.

It is unclear how long the accused could spend behind bars if found guilty, but it will largely be determined by federal sentencing guidelines.

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