FBI Arrests Duo In $230 Million Crypto Fraud: Here’s How They Pulled The Scam Off

Source Bitcoinist

Two individuals, a Singaporean residing in the United States and a US citizen, have been charged with conspiring to steal and launder over $230 million in cryptocurrency.

The pair, identified as 20-year-old Malone Lam, a Singaporean who splits his time between Miami and Los Angeles, and 21-year-old Jeandiel Serrano from Los Angeles, were arrested on Wednesday night by the FBI.

Details Of The Crypto Laundering Scheme

According to a press release from the US Department of Justice, Lam and Serrano fraudulently acquired more than 4,100 Bitcoin, valued at approximately $230 million during the theft, from a victim based in Washington D.C.

Lam, known online by the aliases “Anne Hathaway” and “$$$”, and Serrano, who uses the handles “VersaceGod” and “@SkidStar”, made their initial court appearance on Thursday.

They are accused of leading a crypto theft and laundering operation that involved fraudulent access to victims’ crypto accounts, which allowed them to transfer funds into their control. The Justice Department noted that this scheme had been operating since August of this year.

The scheme orchestrated by Lam and Serrano included advanced laundering techniques to conceal the origin of the stolen assets. According to the allegations, they used cryptocurrency exchanges and mixing services to process and obscure the movement of the stolen Bitcoin.

A key method employed in this operation was “peel chains,” a technique in which large sums of cryptocurrency are broken into smaller transactions, making it difficult to trace the funds.

Additionally, virtual private networks (VPNs) and pass-through wallets added anonymity to their activities, allowing them to avoid detection while laundering the stolen funds.

How Was The Scam Pulled Off?

Blockchain investigator ZachXBT provided insight into how the scam was carried out. In a post on social media platform X, ZachXBT explained that the accused individuals used “sophisticated social engineering” tactics to defraud their victims.

The $230 million fraud case involved the targeting of a creditor from the now-defunct trading firm Genesis. The group allegedly used a spoofed phone number posing as Google support to convince the victim to reset their two-factor authentication, ultimately transferring their cryptocurrency into the conspirators’ control.

According to the US DOJ, the stolen cryptocurrency was used to fund a lavish lifestyle, with the proceeds being spent on luxury goods and experiences.

The law enforcement mentioned that Lam and Serrano spent the laundered cryptocurrency on high-end travel, visits to exclusive nightclubs, luxury cars, expensive jewelry, designer handbags, and rental properties in Miami and Los Angeles.

Their extravagant spending patterns, funded by stolen assets, eventually drew the attention of authorities.

Bitcoin (BTC) price chart on TradingView amid crypto news

Featured image created with DALL-E, Chart from TradinhgView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ripple (XRP) Price Sees a Surge, Solana Targets $600 in 2025 as Investors Increase Focus on New AltcoinThe cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
Author  Cryptopolitan
Jan 15, Wed
The cryptocurrency market is showing renewed momentum as Ripple (XRP) experiences a significant price surge, and Solana (SOL) sets its sights on a bold $600 target by 2025. Meanwhile, a rising altcoin, Lightchain AI, is capturing investor attention with its innovative ecosystem and strong presale performance, making it a compelling choice for forward-looking investors. Ripple […]
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote