Twelve more people have been accused of participating in a $263 million Crypto Assets theft gang, with the funds being squandered on nightclubs and luxury cars.

Source: Cointelegraph Original text: "Another 12 people were accused of participating in a $263 million cryptocurrency theft gang, with the funds squandered on nightclubs and luxury cars."

Twelve more individuals have been charged in connection with a cryptocurrency crime involving $263 million, which stole 4,100 Bitcoin (BTC) from a Genesis creditor in August 2024, and involved a series of burglaries and money laundering activities.

According to a statement from the U.S. Department of Justice (DOJ) on May 15, these 12 new defendants have been added to an alternative indictment, supplementing the charges against the main defendant in this case, Malone Lam, filed on September 19, 2024.

Jeandiel Serrano was named as a defendant in the initial complaint but was not included in the amended complaint.

The Ministry of Justice stated that several defendants have been arrested, while two others are believed to be residing in Dubai.

Many suspects use aliases such as "Goth Ferrrari" and "The Accountant," hailing from California, mostly aged between 18 and 22.

According to the Justice Department, the gang has been active since October 2023, evolving from friendships formed in online games into participating in a "cyber-supported extortion conspiracy."

The Ministry of Justice stated that gang members were assigned various tasks, including hacking databases, conducting social engineering attacks on cryptocurrency holders through cold calling, and even breaking and entering to steal cryptocurrency hardware wallets.

Others participated in money laundering activities, with the Department of Justice stating that the total amount of stolen funds reached $263 million.

Of the total, over $230 million came from an incident on August 18, 2024, when Lam fraudulently obtained more than 4,100 bitcoins (BTC) from a victim.

The Ministry of Justice stated that Lam also hacked into another victim's iCloud account to monitor their whereabouts, while the defendant Marlon Ferro broke into the victim's home to steal a cryptocurrency hardware wallet.

The Ministry of Justice stated that the gang used virtual private networks (VPNs), encrypted mixing protocols, and exchanges that employ "peel chains" to increase the difficulty of tracking illegal activities. Peel chains are a money laundering strategy where cryptocurrencies are transferred through a series of wallets, stripping away small amounts of funds with each transfer.

They were charged with violating the Racketeer Influenced and Corrupt Organizations Act (RICO), as well as crimes involving wire fraud and money laundering.

It is reported that members of the cryptocurrency theft gang used the funds to pay for nightclub services—some nights costing as much as $500,000—buying 28 luxury cars worth up to $3.8 million, as well as luxury handbags, watches, and clothing.

The Ministry of Justice pointed out that they even used forged identity documents to rent houses and private jets to fund their lavish lifestyle.

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