In total, thirteen young men now face federal charges. They took part in a sophisticated international conspiracy to steal in excess of $265 million worth of cryptocurrency. This type of conspiracy specifically predates on victims who possess large amounts of cryptocurrency. The defendants profited handsomely and reportedly spent their ill-gotten gains on high-end personal purchases after committing the theft.
In Washington, D.C., federal prosecutors piled on serious charges. Among other statutes, these involve claims under the Racketeer Influenced and Corrupt Organizations (RICO), RICO Conspiracy, conspiracy to commit wire fraud, and conspiracy to launder monetary instruments. Moreover, the indictment features numerous counts of obstruction of justice.
Among them is Malone Lam, 20, who had no previous criminal record. His attorney, Scott Armstrong, stated, “Mr. Lam is 20 years old and has no criminal history.” I understand that,” Sen. He added, “He is sadly ensnared in a very complex case. We will vigorously defend him.”
In this case, the investigation found that the defendants allegedly met online through gaming consoles. They conspired to use the stolen cryptocurrency assets from victims, executing a multifaceted scheme to carry out their fraudulent scheme. The case has received a great deal of public interest. The size of the thefts—and the expensive lifestyle the accused paid for—has taken plenty of people by surprise.
Following the thefts, the crew allegedly went on a spending spree of nearly $9 million on luxury cars and other illegal purchases. They spent $4 million more at nightclubs alone. This lavish spending illustrates just how far they went to bask in their dirty money successes.
Most importantly, Lam and several others were charged in mid-August with a violent crime that brought national attention to the City of Brotherly Love. They were allegedly caught robbing a victim in Washington, D.C. of over $245 million in Bitcoin. The newly unsealed superseding indictment tells the story of Lam and 12 others’ participation in an expansive operation. This coordinated operation proceeds across the country and involved complex logistics and coordination.
Law enforcement agencies and National Criminal Intelligence Resource Center stakeholders have made impressive progress in capturing high-profile suspects tied to this syndicate. Most recently, Hamza Doost and Kunal Mehta were arrested in California last week as part of this years-long investigation. Their arrests are a testament to the diligent work of federal investigators. These agents are committed to ripping down the Web that undergirds these huge cryptocurrency plunderings.
This case poses several legal hurdles for each party. It comes on the heels of the increasing focus on SUCY, and more broadly on cybersecurity and financial crimes associated with digital currencies. Cryptocurrency is all the rage these days. The fallout from events such as this further exposes security risks surrounding digital assets and the potential harms posed to investors.
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