DOJ Charges 12 More in $263M Gamer-Led Bitcoin Theft Ring

From online gaming to cybercrime, the DOJ uncovers a crypto heist gang responsible for stealing thousands of Bitcoin and laundering millions through hacks, burglaries, and digital laundering tools.



The U.S. Department of Justice (DOJ) has charged 12 additional individuals connected to a sprawling $263 million cryptocurrency theft ring, which once stole over 4,100 Bitcoin from a single victim in a single hack.

The new defendants, revealed in a May 15 superseding indictment, expand the scope of the case initially brought against lead defendant Malone Lam on September 19, 2024. Several of the newly charged individuals have been arrested, while two are believed to be in Dubai, according to the DOJ.

This cybercriminal network — many of whom are between 18 and 22 years old and hail from California — began forming in October 2023, with members bonding through online games before evolving into what the DOJ now calls a “cyber-enabled racketeering conspiracy.”



From Hacking to Home Invasions

The group allegedly carried out a sophisticated range of crimes:

• Hacking databases

• Cold-calling crypto holders for social engineering attacks

• Burglarizing homes to steal hardware wallets

• Monitoring victims’ iCloud accounts for personal surveillance

One of the most devastating heists took place on August 18, 2024, when Lam allegedly stole 4,100 BTC (worth over $230 million) from a Genesis creditor, forming the bulk of the stolen funds.

Another defendant, Marlon Ferro, allegedly broke into a victim’s home to steal crypto hardware, timed using personal information hacked from cloud accounts.

The DOJ said stolen funds were laundered using tactics like:

• Peel chains, where crypto is moved through multiple wallets with small amounts siphoned off at each step

• Crypto mixer protocols

• Obscured transfers through VPNs and shady exchanges

RICO Charges and a Lavish Lifestyle

The 12 newly charged individuals face RICO charges, in addition to wire fraud and money laundering offenses. The Racketeer Influenced and Corrupt Organizations Act (RICO) is typically reserved for large, organized criminal groups.

The stolen millions fueled an extravagant lifestyle that included:

• Nightclub parties costing up to $500,000

• 28 exotic cars, including models worth up to $3.8 million

• Luxury handbags, watches, and designer clothing

• Fake IDs used to rent private jets and luxury homes

Defendants used aliases like “Goth Ferrrari” and “The Accountant”, reflecting the mix of underground culture and high-stakes crime that defined the group’s operations.

This case is among the largest crypto-related theft and laundering schemes ever prosecuted in the U.S., and it highlights growing concerns about youth cybercrime, the misuse of privacy tools, and the urgent need for stronger safeguards in digital finance.