Meet Gen Z’s Crypto Mafia: 13 Indicted for Biggest Bitcoin Heist in U.S. History

U.S. federal prosecutors have unsealed sweeping new charges against 12 additional individuals allegedly involved in a cybercrime ring that stole over $263 million in cryptocurrency through elaborate hacking and social engineering tactics.

Malone Lam, 20, and a dozen others were included in the four-count  indictment made public on Thursday by the U.S. Attorney’s Office for the District of Columbia, the Federal Bureau of Investigation (FBI), and IRS Criminal Investigation (IRS-CI). This indictment does not include Jeandiel Serrano, even though he was thought to be connected to the case before.

DOJ Indicts Thirteen in Crypto Scheme

According to the authorities, arrests happened in California, and warrants were issued for two suspects who are believed to live in Dubai. Some of the defendants are Americans, while some others are citizens of foreign countries. The ages of most of the defendants are between 18 and 21, while two of them are recognized only by their online names.

The indictments show that out of the thirteen people charged, twelve are accused of conspiracy under the RIC Of the thirteen, nine are accused of laundering money and eight are said to have conspired to carry out wire fraud. The ninth defendant, John Tucker Desmond, is accused of obstruction of justice for getting rid of vital evidence in the case.

FBI Reports $16.6 Billion in Losses

This case is one of many that point to a growing amount of cybercrime in America. In 2024, the FBI reported that people lost $16.6 billion due to internet crime, which is a 33% increase from the previous year. 

This category experienced a 66% increase from 2023 with over 149,000 complaints and losses of $9.3 billion last year. Prosecutors explain that the group acted as a unified unit from at least October 2023 through March 2025, starting by meeting through gaming platforms on the Internet. 

There were different roles for each member of the group: A few individuals in the group specialized in hacking, impersonating customer services, and managing the washing of their crypto into regular money.

VPNs and Peel Chains Obscured Transactions

One member of the group, Marlon Ferro (aged 19), is said to have physically broken into places to obtain crypto wallets, most notably during a New Mexico residence heist in July 2024. 

To mix up the trail of the stolen money, they employed crypto mixers, peel chains, used VPNs, and set up several shell companies. Their earnings were apparently used to buy at least 28 big and pricey cars, some of which cost up to $3.8 million. 

Prosecutors said the group spent a lot of money on things like private jet trips, nightclub bills that adding up to a lot, giving fancy gifts like Hermes handbags to their partners, and renting out places in the Hamptons, Miami, and Los Angeles. One of the more unusual ways the group smuggled money was by putting big piles of cash into Squishmallows, which are popular soft toys.

Suspects Lived Lavishly in Elite Locations

In addition to spending money on stuff like cars and clothes, the group is said to have found nice places to stay in places like the Hamptons, Los Angeles, and Miami, and even hired bodyguards. 

Law enforcement agencies have already taken back a big collection of valuable things like expensive cars, designer clothes, jewelry, bottles of expensive champagne, and more, even getting their hands on a special gold teeth grill.

Authorities allege that Lam, identified as the ringleader, kept running parts of the crime business even after he was arrested, and had his friends bring nice gifts to his girlfriend outside prison.

The investigation is still going on, and the FBI offices in LA and Miami are helping out. Prosecutors said that they might make more arrests and seize more things as the investigation moves forward. Prosecutors said there might be more arrests and seized items being found because the investigation is still going on.

Conclusion

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The case points out the big increase in cybercrime and the expensive lifestyles it makes possible. With young offenders as young as 18 involved, authorities say it is important to act fast about digital fraud. Officials vowed to find and charge all suspects and to try to recover all the stolen cryptocurrency as the case was investigated.

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FAQs

Q1: What charges are the suspects facing?

 A: Most face RICO conspiracy, money laundering, and wire fraud charges. One is charged with obstruction of justice.

Q2: Who are the accused and where are they?

 A: They are mostly aged 18–21, from the U.S. and abroad. Some were arrested in California; two are believed to be in Dubai.

Q3: How did they steal and hide the crypto? 

A: Through hacking, impersonation, and laundering via mixers, VPNs, and shell companies.

Q4: What did they spend the money on? 

A: Exotic cars, private jets, luxury homes, designer goods, and even stuffed Squishmallows to hide cash.

Glossary Of Key Terms

Social Engineering – Tricking people into giving up private info or access.

RICO Conspiracy – A charge for organized group crime.

Crypto Wallet – A digital place to store cryptocurrency.

Launder Money – Hiding the source of stolen money.

VPN – A tool to hide your location online.

Mixer – A service that hides crypto transaction trails.

Obstruction of Justice – Blocking or interfering with a legal case.

References

www.justice.gov