An international cybercrime ring has been exposed for using stolen crypto to live lavishly: renting mansions in Miami, flying private jets, spending money at nightclubs, and hiding money in... stuffed animals.
The U.S. Department of Justice (#DOJ ) has charged 12 new individuals, bringing the total number of defendants to 13 in a massive cyber fraud scheme that saw $263 million in cryptocurrency stolen. Most of the defendants are between the ages of 18 and 21, some known only by their online aliases.
From Gamer to Hacker: A Sophisticated Plan That Lasted Nearly 2 Years
According to the indictment, the group operated from October 2023 to March 2025, initially connecting through online gaming platforms. Each person then took on specific roles:
Hackers breach data
Person pretending to be support staff to trick victims
Crypto money launderers
Home invasion to steal hardware wallet
A typical case is Marlon Ferro (19 years old), accused of directly breaking into a house in New Mexico to steal a crypto wallet in July 2024.
“Creative” money laundering: from shell companies to stuffed animals
The group used all sorts of tricks to launder cryptocurrencies, including:
Mixers
Peel chains
VPN and shell companies
Cash transfer hidden in Squishmallows stuffed animals – a famous soft toy brand.
The money this group spends on luxuries:
At least 28 supercars – some worth up to $3.8 million
Private jet charter
Nightclub party with bill of hundreds of thousands of dollars
Hermes bag gift for girlfriend
Luxury Villas for Rent in Los Angeles, Miami, and the Hamptons
Notably, one of the main suspects – Malone Lam (20 years old) – is said to have continued to operate the criminal activity while in pre-trial detention, and directed relatives to bring luxury items to his girlfriend.
Cybercrime and crypto scams skyrocket
The incident occurred amid a sharp increase in cybercrime in the US:
In 2024, the FBI recorded $16.6 billion in losses from cybercrime, a 33% increase from the previous year.
Crypto-related scams account for the majority of:
149,686 complaints,
More than $9.3 billion was misappropriated, up 66% from 2023.
The charges in the case include:
Conspiracy to commit a crime under law #RICO (organized crime)
Money laundering conspiracy
Internet fraud
Destroy evidence
Connect with Binance users and the crypto market
This case is a strong warning to both individual and institutional investors, especially users on exchanges like Binance. Fraudulent tricks are becoming more and more sophisticated, from impersonating customer support to hacking personal data.
To limit risks, users need to:
Do not share your wallet information or OTP code with anyone
Use hardware wallet, multi-layer security
Always verify carefully when receiving a call or email from "technical support"
Risk Warning:
The crypto market is full of potential but also has many potential risks, including cyber attacks and sophisticated fraud. Users need to be cautious, not let greed cloud their judgment, and always maintain a high level of vigilance when investing or trading digital assets.