Thirteen men have been charged by federal prosecutors in Washington, D.C., as part of a large-scale conspiracy to target victims with significant cryptocurrency assets, steal those funds, and launder the illicit proceeds, according to court documents.
The latest superseding indictment, made public on Thursday, reveals that over $265 million worth of cryptocurrency was reportedly stolen from the victims.
Among the accused, a mix of American and foreign nationals who allegedly connected through online gaming, some are reported to have indulged lavishly following the thefts, splurging on $9 million worth of exotic vehicles and $4 million in nightclub expenses.
One defendant, Malone Lam, has previously been implicated in a notable theft that involved approximately $245 million in bitcoin taken from a victim in D.C. in mid-August.
This incident reportedly precipitated the audacious kidnapping of the parents of one of Lam’s alleged accomplices in suburban Connecticut, orchestrated by a group from Florida who sought to hold the parents for ransom from their suddenly wealthy son.
The superseding indictment includes charges against Lam and 12 other men, encompassing RICO Conspiracy, conspiracy to commit wire fraud, conspiracy to launder monetary instruments, and obstruction of justice. This week, two of the defendants, Hamza Doost and Kunal Mehta, were apprehended in California, as indicated by court documents.
Most of the remaining defendants are believed to have been arrested across various locations in the United States within recent days.
Notably, neither Lam’s co-defendant from the initial indictment concerning the $245 million heist — Jeandiel Serrano — nor the son of the kidnapped parents is listed as a defendant in the new indictment.
Instead, both individuals are referenced merely as “co-conspirators” in the legal filings.
The U.S. Attorney’s Office for the District of Columbia stated, “Members and associates of the enterprise used the stolen virtual currency to purchase, among other things, nightclub services ranging up to $500,000 per evening, luxury handbags valued in the tens of thousands of dollars that were given away at nightclub parties, luxury watches valued between $100,000 and $500,000.”
Additionally, the accused are reported to have spent the stolen money on “luxury clothing worth tens of thousands of dollars, upscale rental homes in locations like Los Angeles, the Hamptons, and Miami, private jet rentals, a security team, and at least 28 exotic cars valued between $100,000 and $3.8 million,” the prosecutors noted.
Following his arrest in September and while being held without bail, “Lam is alleged to have continued collaborating with members of the organization by providing and receiving instructions, collecting stolen cryptocurrency, and arranging for enterprise associates to purchase luxury Hermes Birkin bags and deliver them directly to his girlfriend in Miami.”
Scott Armstrong, Lam’s attorney, commented to Finance Newso, stating, “Mr. Lam is 20 years old and has no criminal history.” He added, “He is unfortunately caught up in a very complicated case. We will vigorously defend him.”
Finance Newso has reached out for comments from Serrano’s legal representative.
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