New Charges in Cryptocurrency Crime
In a significant development in the realm of cryptocurrency crime, U.S. prosecutors have revealed charges against twelve new individuals connected to an extensive racketeering conspiracy. This case, which involves alleged thefts exceeding $263 million in cryptocurrency and additional offenses like money laundering, was detailed in a newly unsealed indictment this week.
The announcement came from prominent officials including U.S. Attorney Jeanine Ferris Pirro and FBI Special Agent Sean Ryan, who outlined the group’s operations that spanned from October 2023 to March 2025.
Details of the Indictment
The indictment accuses a diverse group comprising both domestic and international individuals of engaging in criminal activities such as racketeering, wire fraud, and obstructing justice. Authorities highlighted that the group’s operations germinated from interactions on online gaming platforms, where members took on specific roles. Hackers reportedly breached cryptocurrency databases, while other members, identified as “callers,” employed social engineering tactics to deceive victims. Additionally, certain individuals engaged in physical theft of hardware wallets during home invasions.
Money Laundering and Lavish Expenditures
Prosecutors assert that the conspirators engaged in intricate money laundering schemes utilizing cryptocurrency mixers, peel chains, and various shell companies, using the laundered gains to support a lavish lifestyle including rent for luxury properties, private jet rentals, and a fleet of 28 high-end automobiles valued up to $3.8 million each.
The indictment provides insights into ostentatious expenditures—highlighting over $4 million spent at nightclubs, as well as significant purchases of watches valued at $500,000 and deliveries of expensive Hermès Birkin bags to accomplices.
Notable Incidents and Ongoing Investigation
One remarkable incident cited in the indictment involved a theft in August 2024, in which the defendants allegedly stole 4,100 bitcoins valued at $230 million at the time, now estimated to be worth approximately $423 million. In another case, they reportedly monitored a New Mexico victim’s iCloud location to facilitate a break-in aimed at acquiring a hardware wallet.
While authorities have apprehended several suspects in California this week, two remain at large in Dubai. Alarmingly, even after arrests were made, the conspiracy is said to have persisted, with reports of co-conspirators using stuffed animals for mailing large sums of cash.
The investigation, spearheaded by Assistant U.S. Attorney Kevin Rosenberg, reflects coordinated efforts among the FBI’s offices in Washington, Los Angeles, and Miami. Should the accused be convicted, they face potential penalties as determined by federal sentencing guidelines.
