Thirteen young men have been charged in a sweeping conspiracy to steal cryptocurrency from victims, amassing over $265 million in stolen assets. Federal prosecutors in Washington, D.C., are leading the investigation. The group’s Ministry of State Security allegedly targeted individuals with large amounts of cryptocurrency, stole their assets, and laundered the proceeds.
The defendants, who allegedly met and became friends on online gaming websites, are charged with using the stolen funds to live lavishly. Such opulence was filled with personal expenditures such as $9 million on exotic cars and $4 million at nightclubs. Malone Lam, a 20-year-old who had no previous criminal record, is one of those being charged. He was arrested on similar charges in connection with an enormous hack that took about $245 million in bitcoin from a D.C. victim last summer in mid-August.
The new superseding indictment details several charges against Lam and twelve other alleged co-defendants. These are RICO conspiracy, conspiracy to commit wire fraud, conspiracy to launder monetary instruments, and obstruction of justice. Federal authorities have described the scope of the operation as a major existential crisis to ongoing law enforcement efforts.
Defense attorney Scott Armstrong, who represents Lam, noted his client’s lack of a criminal history.
“Mr. Lam is 20 years old and has no criminal history,” – Scott Armstrong
This case has garnered significant media attention due to its size and complexity. It further illuminates the ongoing issues of cryptocurrency security and scams. Investigators continue to piece together the full picture of this grizzly conspiracy. Over the next several months, we will start to see these implications play out, for the victims as well as the perpetrators.
“He is unfortunately caught up in a very complicated case. We will vigorously defend him.” – Scott Armstrong
Of the four defendants, Hamza Doost and Kunal Mehta were arrested earlier this week in California. This round of arrests marks a critical breakthrough in the federal investigation. Authorities are doing a commendable job of ensuring that everyone involved is held accountable for their actions.
Two of the accused, Hamza Doost and Kunal Mehta, were arrested earlier this week in California. The arrests mark a crucial step in the federal investigation, as authorities aim to hold all individuals involved accountable for their actions.