Young Cyber Gang Linked to $263M Bitcoin Theft Busted by U.S. Authorities

A cybercrime crew composed mostly of California-based youth has been indicted for orchestrating a massive crypto heist, stealing over $260 million in Bitcoin and laundering it through an elaborate web of digital tactics and real-world crimes.

What began as a group of online gamers allegedly evolved into a high-stakes criminal network. According to the U.S. Department of Justice, the ring infiltrated databases, manipulated victims through social engineering, and even broke into homes to physically steal hardware wallets.

Their largest hit came in August 2024, when more than 4,100 BTC were fraudulently extracted from a single crypto creditor.

Federal officials have now charged 12 new suspects in connection with the case, expanding on prior charges against lead figure Malone Lam. Some members were arrested in the U.S., while others are suspected of fleeing to Dubai.

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The accused, many aged between 18 and 22, operated under aliases like “The Accountant” and “Goth Ferrari,” and allegedly masked their tracks using VPNs, crypto mixers, and peel chains—a laundering method involving step-by-step transfers.

Their newfound wealth funded a spree of excess: luxury cars, private jet rentals, fake IDs, and $500,000 nights out, according to investigators. While some stateside arrests have been made, the DOJ notes that the investigation remains active, as authorities seek to dismantle what they now call a “cyber-enabled racketeering conspiracy.”

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.