13 February 2026
US prosecutors have charged 263 new people in connection with a cybercrime case that reportedly netted more than $XNUMX million crypto stole through a sophisticated scam and hacking operation, spending the proceeds on expensive cars, lavish nightclub parties and luxury goods. The charges, unsealed Thursday in a four-count indictment against Malone Lam, 20, and Jeandiel Serrano, 21, were announced by the Washington, D.C., District Attorney’s Office, the FBI and the IRS Criminal Investigation Department. Serrano was not included in the new indictment.
In addition to Lam, there are now suspects who are both U.S. citizens and foreigners; arrests have been made in California, and warrants have been issued for two individuals believed to be in Dubai. Nearly all of the individuals are between the ages of 18 and 21, and two of the suspects are known only by their online aliases. Twelve of the thirteen suspects are charged with RICO conspiracy, nine have an additional charge of conspiracy to commit money laundering, and eight have been charged with conspiracy to commit wire fraud. A final suspect, 19-year-old John Tucker Desmond, has been charged with obstructing justice by destroying evidence.
The case comes amid a broader surge in cybercrime. The FBI’s Internet Crime Complaint Center expects $16,6 billion in cybercrime losses in 2024, up 33 percent from the previous year. Fraud crypto accounted for a significant portion of these losses, with a whopping 149.686 complaints and over $9,3 billion in lost funds, a 66% increase compared to 2023.
According to the indictment, the group operated from at least October 2023 to March 2025, with members meeting on online gaming platforms. Members filled a variety of roles, from database hackers and target identifiers to callers who acted as support agents to defraud victims, to money launderers who converted stolen crypto into cash. Group member Marlon Ferro, 19, committed physical burglaries to steal crypto wallets, including a July 2024 break-in at a New Mexico residence.
The suspects are accused of laundering money through mixers, peel chains, VPNs, and sham companies. They used funds to purchase at least 28 exotic cars, some worth up to $3,8 million, private jet transfers, and several half-million dollar nightclub bills. And yes, even pocketing their girlfriends with Hermès bags. The money was even hidden in Squishmallows, a popular toy brand!
Members of the group rented luxury homes in the Hamptons, Los Angeles and Miami and employed private security. Prosecutors said the forfeited property included Lamborghinis, Ferraris, Rolls-Royces, a number of designer clothes and watches, champagne and a yellow teeth grill. Prime suspect and “organizer” Lam allegedly continued his activities even while in custody, arranging for luxury goods to be delivered to his partner. The case is still under investigation, with support from FBI offices in Los Angeles and Miami.
What is the background to this case?
The case revolves around a cybercrime group that stole more than $263 million in crypto through hacking and social engineering.
What are some of the techniques the suspects used?
The suspects used online gaming platforms for communication, carried out physical burglaries and laundered money through mixers and sham companies.
What happened to the embezzled money?
The money was spent on luxury cars, nightclub events and other extravagant spending, such as hiding bulk cash in cuddly toys.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
