The U.S. Department of Justice has expanded its indictment in one of the largest crypto crime cases to date. Twelve new individuals have been charged in connection with a cybercrime gang that allegedly stole 4,100 Bitcoins — worth around $263 million — primarily from a single victim.

From Online Gaming Friends to a Coordinated Cybercrime Ring

According to investigators, the group began operating in October 2023, starting as a group of friends who bonded over online games. But their hobby turned dark as they evolved into an organized extortion network. Most of the accused — aged between 18 and 22 — hail from California and used online aliases such as “Goth Ferrari” and “The Accountant.”

Several suspects have already been arrested, while two others are believed to be hiding in Dubai.

Hacks, Break-ins, and Stolen Hardware Wallets

The DOJ describes a wide range of criminal tactics:

🔹 Hacking databases and stealing credentials

🔹 Impersonating customer support agents

🔹 Calling victims to carry out social engineering attacks

🔹 Breaking into homes to steal hardware wallets

One of the most striking incidents occurred on August 18, 2024, when lead defendant Malone Lam allegedly tricked a victim into handing over more than 4,100 Bitcoins.

In another case, Lam reportedly hacked into a victim’s iCloud account to track their location, while accomplice Marlon Ferro broke into the victim’s home to steal physical wallets.

Sophisticated Laundering with Peel Chains and Mixers

To cover their tracks, the group used advanced money laundering methods:

🔹 VPNs and crypto mixing services

🔹 “Peel chains” — where stolen crypto is moved through dozens or hundreds of wallets, peeling off small amounts at each step

The defendants are now facing charges under the RICO Act, as well as wire fraud and money laundering charges.

Flashy Lifestyles: From Crypto to Clubs, Cars, and Private Jets

The group didn’t hold back when spending the stolen funds. According to the DOJ:

🔹 They ran up nightclub tabs as high as $500,000 in a single night

🔹 Bought 28 luxury cars worth $3.8 million

🔹 Splurged on designer handbags, watches, and high-end fashion

🔹 Rented luxury villas and private jets using fake identities

The gang operated like a well-oiled machine — knowing how to launder money, hide digital footprints, and live like celebrities while doing it.

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