Federal prosecutors have charged 18 individuals under the Racketeer Influenced and Corrupt Organizations Act for the theft of over 4,100 Bitcoin. The assets were valued at approximately $263 million at the time of the incident, which occurred on August 18, 2024, in Washington, D.C.
The group allegedly used social engineering, impersonating officials from Google and Gemini to obtain wallet access codes. The investigation began after a co-defendant failed to mask their IP address while using a rental property costing $47,500 per month. Arrests commenced in September 2024.
Lead defendant Malone Lam reportedly spent $4 million at nightclubs in one month, with a single night's bill reaching $569,000. Other alleged expenditures included luxury cars, private jets, and mansions. Lam is expected to become the 11th defendant to enter a guilty plea.
Several individuals involved in money laundering for the scheme have already received prison sentences averaging six years. The remaining defendants are currently facing proceedings in the U.S. District Court in D.C. This case marks the first time RICO charges have been applied to a cryptocurrency theft.
