A federal investigation into the theft of $240 million in Bitcoin has produced charges against 18 people and revealed how a group of young cybercriminals allegedly turned a sophisticated crypto scam into a month-long spending spree.
Prosecutors allege Malone Lam, 22 years old, orchestrated the 2024 scam with associates Jeandiel Serrano and Veer Chetal, targeting a wealthy crypto investor based in Washington, D.C. The group used social engineering tactics to persuade the victim to provide access to a security code and Google Drive account, allowing them to seize over 4,100 BTC.
The suspects then moved the crypto through several exchanges and converted portions of it into cash, prosecutors said.
Authorities say Lam bought more than 30 vehicles, including customized Ferraris, Porsches, and Lamborghinis, as well as a watch worth $2 million. He and his friends reportedly spent roughly $4 million in nightclubs around Los Angeles in a single month. On one night alone, Lam allegedly spent close to $570,000.
Chetal reportedly had cash worth $500,000 stored inside his parents’ washing machine and previously gave them a Lamborghini. The sudden wealth also attracted criminals. A few days after the theft, masked men in Connecticut allegedly abducted Chetal’s parents and tried to force him to surrender his share of the crypto. Police intervened after witnesses reported the incident.
Investigators later found $37 million in stolen crypto at Chetal’s apartment in New Jersey. He entered a guilty plea in November 2024 and is awaiting sentencing.
The case against Serrano developed after investigators identified an IP address connected to a crypto exchange account holding about $30 million of the stolen Bitcoin. The digital trail reportedly led authorities to a residence in Encino.
Serrano was arrested at Los Angeles International Airport on September 18, 2024, while wearing a $500,000 watch. Prosecutors say he later admitted possessing about $20 million tied to the theft. Lam was also arrested at a Miami mansion. His plea deal hearing is scheduled for this week.
Eleven of the 18 defendants will plead guilty if Lam enters his expected plea. Three co-conspirators have already been sentenced, including two money launderers who received roughly six-year prison terms.
The case comes amid a broader rise in crypto fraud. FBI complaints involving crypto investment scams increased by nearly 50% last year. Meanwhile, the Department of Justice dissolved a unit focused on crypto-related prosecutions last year.
The successful prosecution of this group of scammers is likely to make crypto firms like Canaan Inc. (NASDAQ: CAN) more confident about the capacity of the authorities to act decisively against groups focused on illicitly benefiting from the sweat of crypto investors.
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