DOJ charges 12 more in $263 million Crypto theft ring under RICO Act

The U.S. Department of Justice has announced charges against 12 additional individuals in a sprawling racketeering case involving a sophisticated cryptocurrency theft ring that allegedly stole over $263 million. The new indictments bring the total number of defendants in the case to 14.

According to a press release issued by the DOJ, the individuals face charges including conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act, conspiracy to commit wire fraud, money laundering, and obstruction of justice. The operation is described as a cyber-enabled racketeering conspiracy that spanned across the United States and internationally.

Authorities say the criminal network—comprising Americans and foreign nationals—used a complex combination of hacking, social engineering, and physical theft to steal cryptocurrency from victims. The suspects reportedly met and organized the scheme through online gaming and dating platforms. Their roles included hackers, organizers, money launderers, cold-callers, and even residential burglars targeting hardware-based crypto wallets.

The DOJ alleges that the operation has been active since at least October 2023. Members of the group are accused of hacking into websites and servers to extract cryptocurrency-related databases. Organizers and data analysts within the ring then identified high-value targets by sifting through the stolen data.

Once targets were identified, members of the group allegedly contacted victims by phone, posing as customer service or security agents. Using deceptive tactics, they convinced victims that their accounts had been compromised and persuaded them to surrender access credentials, enabling the theft of crypto assets.

In one of the central incidents cited in the indictment, two California men, Malone Lam and Jeandiel Serrano, were arrested in September 2024. They are accused of stealing 4,100 Bitcoin—then valued at approximately $230 million—from an unnamed victim in Washington, D.C., and attempting to launder the proceeds using a series of advanced methods. According to investigators, the funds were funneled through mixers, exchanges, peel chains, pass-through wallets, and virtual private networks to disguise their origin and the identities of those involved.

The indictment also reveals the lavish lifestyle funded by the stolen assets. Members of the conspiracy reportedly used the ill-gotten gains to purchase luxury real estate, high-end automobiles, designer handbags and watches, jewelry, and to fund extravagant nights out, including nightclub expenditures of up to $500,000 per evening. Private security services and private jet travel were also utilized.

While most of the individuals named in the indictment have been apprehended, two remain at large and are believed to be in Dubai. If convicted, all defendants face sentences that will be determined by the court in accordance with federal sentencing guidelines.

The case comes amid a sharp rise in cryptocurrency-related crime. In the first quarter of 2025 alone, over $1.5 billion was reportedly lost to thefts and scams in the crypto sector—a staggering 300% increase compared to the previous year.