A recent update in a high-profile crypto crime case has revealed that an additional 12 individuals have been charged for their involvement in a complex scheme that saw the theft of 4,100 Bitcoin valued at $263 million from a Genesis creditor in August. The original indictment was filed against the main defendant, Malone Lam, on September 19, 2024, and the Department of Justice (DOJ) announced the inclusion of the new names in a superseding indictment on May 15.

While one of the defendants, Jeandiel Serrano, was mentioned in the initial indictment, they were not included in the recent superseding indictment. The DOJ stated that several defendants have already been arrested, while two others are believed to be residing in Dubai. The group, which includes individuals with aliases like "Goth Ferrrari" and "The Accountant," primarily hails from California and most members are aged between 18 and 22.

The criminal activities of this group allegedly began in October 2023, starting as friends who played online games and eventually evolving into what the DOJ describes as a "cyber-enabled racketeering conspiracy." The members were involved in a variety of illegal activities, such as hacking databases, conducting social engineering attacks on crypto holders, burglarizing homes to steal crypto hardware wallets, and laundering the stolen funds, totaling $263 million.

The theft ring employed various tactics to obfuscate their illicit activities, including the use of virtual private networks, crypto mixer protocols, and "peel chains," a money laundering technique where crypto is transferred through multiple wallets with small amounts of funds being siphoned off at each step to evade detection.

The defendants have been charged with RICO (Racketeer Influenced and Corrupt Organizations) violations, as well as offenses related to wire fraud and money laundering. The stolen funds were reportedly used to fund extravagant lifestyles, with members splurging on nightclub services, exotic cars, luxury handbags, watches, clothing, and even renting homes and jets using fake identity documents.

This case highlights the growing sophistication of cybercrime in the crypto space and the need for robust security measures to protect digital assets. The DOJ's efforts to prosecute those involved in such criminal activities demonstrate a commitment to safeguarding the integrity of the crypto industry and holding perpetrators accountable for their actions.

Source: https://cointelegraph.com/news/12-more-charged-263-million-crypto-theft-ring?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound