Crypto scam ringleader who allegedly stole over $240-million in bitcoin set to appear in U.S. court — SkimNews
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- Malone Lam, the 22-year-old alleged ringleader, faces a plea hearing Tuesday with prosecutors recommending at least 14 years; he would be the 11th of 18 defendants to plead guilty in the August 2024 theft of 4,100 bitcoin.
- The scam relied on "social engineering" — callers impersonating Google and Gemini representatives tricked the D.C. victim into sharing security codes, allowing Lam and co-conspirators Veer Chetal and Jeandiel Serrano to drain his crypto wallet.
- Lam and co-conspirators blew the proceeds on a month-long spending spree totaling $4 million at nightclubs, 30+ luxury cars including Lamborghinis and Ferraris, a $2 million watch, private jets, and mansions in Miami and the Hamptons.
- FBI complaints of cryptocurrency investment fraud rose nearly 50% in 2025 while the Justice Department disbanded its dedicated crypto-crime prosecution unit and the Trump administration pursued a hands-off approach to the industry.
- Co-conspirator Jeandiel Serrano was caught after failing to conceal his IP address while opening an exchange account holding roughly $30 million in stolen crypto, linking investigators to his $47,500-per-month Encino rental; FBI agents arrested him at LAX wearing a $500,000 watch.
- Veer Chetal's parents were carjacked in Danbury, Connecticut, when masked men from Miami tried to extort their son for his share; Chetal's father was beaten with a baseball bat before witnesses tipped off police and the plot collapsed.
- U.S. Magistrate Alicia Valle likened the case to "Ferris Bueller gone bad" at Lam's first appearance, while U.S. District Judge Colleen Kollar-Kotelly told defendants "being young only goes so far" when rejecting attorney characterizations of them as "mischievous young kids."
Why it matters: The case crystallizes the cost of deregulation: FBI crypto fraud complaints rose nearly 50% in 2025 while the DOJ disbanded its dedicated crypto-crime unit, leaving victims of nine-figure heists like this one with little enforcement deterrent even as the industry enjoyed a hands-off regulatory environment that generated roughly $1.2 billion in earnings for Trump in 2025.
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