Federal Prosecutors Charge 13 Men in Expansive Bitcoin Theft Conspiracy
D.C. Investigation Uncovers Multi-Million Dollar Crypto Theft Ring
Federal prosecutors in Washington, D.C., have announced the indictment of 13 individuals involved in a sophisticated cryptocurrency theft conspiracy. This operation allegedly targeted individuals with significant cryptocurrency holdings, resulting in the theft of over $265 million, according to a superseding indictment filed in court.
Details of the Allegations
The defendants, comprising both American citizens and foreign nationals, reportedly formed connections through online gaming platforms. Their post-theft expenditures included extravagant purchases totaling millions, with $9 million spent on exotic cars and an additional $4 million dedicated to nightlife activities, such as clubbing and entertainment, alongside multiple luxury rental properties.
One notable figure in this case is 20-year-old Malone Lam from Singapore. Lam has been previously charged with participation in the largest recorded theft of approximately $245 million worth of Bitcoin from a victim in D.C. This particular incident has been linked to a subsequent kidnapping event in Connecticut, where the parents of one of Lam’s alleged accomplices were taken hostage in a ransom scheme.
The Lavish Spending Spree
Following their alleged criminal activities, members of the conspiracy are accused of indulging in lavish lifestyles. Prosecutors highlighted that they used stolen cryptocurrency for a range of opulent purchases, including:
- Nightclub services costing up to $500,000 per night.
- Luxury handbags often valued in the tens of thousands.
- High-end watches worth between $100,000 and $500,000.
- Rental homes in affluent areas such as Los Angeles, the Hamptons, and Miami.
- Private jet services and a fleet of at least 28 exotic cars, with individual values ranging from $100,000 to as much as $3.8 million.
Moreover, one defendant, 21-year-old Joel Cortes of Laguna Niguel, California, allegedly helped facilitate the conversion of stolen virtual currency into traditional currency, even using stuffed toys to smuggle cash valued at around $25,000 each.
Criminal Charges and Arrests
The 13 individuals face charges including RICO conspiracy, conspiracy to commit wire fraud, laundering monetary instruments, and obstruction of justice. Among them, Hamza Doost and Kunal Mehta have been arrested in California for their purported roles in the money laundering operations.
The majority of the other defendants were reportedly apprehended across various states in the past week. The ages of the defendants range between 18 and 22 years, with two individuals known only by nicknames.
Ongoing Investigations and Legal Proceedings
Prosecutors revealed that investigative efforts have included the use of tips from law enforcement officers, alerting some accused about impending arrests. Following his initial arrest, Lam allegedly attempted to destroy evidence by disposing of his mobile device in a body of water, further complicating the investigation against him.
Despite the serious allegations, Lam’s defense attorney, Scott Armstrong, emphasized that his client has no prior criminal history and insists on a vigorous defense against the charges.
This case underscores the growing trend of cryptocurrency-related crime, with law enforcement agencies increasing their scrutiny of high-value digital asset transactions and the potential for exploitation by criminal enterprises.
As legal proceedings continue, the broader implications of this case may further illuminate the intersection of technology, finance, and organized crime.
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