MIAMI, Florida.— Two young men are now behind bars after being implicated in a massive Bitcoin fraud worth over $230 million. The accused, Malone Lam and Jeandiel Serrano, have become central figures in an extensive investigation conducted by the FBI and the Internal Revenue Service (IRS), with the cooperation of key regional offices.
Malone Lam, 20, a resident of both Miami and Los Angeles, went by digital pseudonyms such as “Anne Hathaway” and “$$$.” Meanwhile, Jeandiel Serrano, 21, from Los Angeles, was known online as “VersaceGod” and “@SkidStar.” Both were arrested on September 16 in simultaneous operations in Miami and Los Angeles, and they are expected to appear in courts in Florida and California soon.
Unraveling the Bitcoin Fraud conspiracy
Court documents reveal that, since at least August 2024, Lam, Serrano, and other accomplices orchestrated a series of cryptocurrency thefts using advanced methods to fraudulently access victims’ accounts. Once inside, they transferred the funds into their own digital wallets, making it difficult for authorities to trace the stolen assets.
This Bitcoin fraud was facilitated by using cryptocurrency exchanges and “mixers,” services designed to obscure the origin of the funds. The criminals also employed techniques like “peel chains,” a method where large sums of cryptocurrency are broken into smaller amounts and spread across multiple wallets to evade detection.
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The biggest Bitcoin heist
One of the most notable events took place on August 18, 2024, when Lam, Serrano, and their associates managed to steal over 4,100 Bitcoin, valued at more than $230 million, from a victim in Washington, D.C. This was the largest theft in the operation, triggering a more aggressive pursuit by law enforcement.
Living in luxury with stolen funds
The stolen funds weren’t just laundered; they were used to finance a life of luxury. Investigators revealed that both Lam and Serrano spent lavishly on international travel, VIP access to exclusive clubs, and high-end purchases. Their expenses included luxury cars, expensive watches, designer jewelry, and the rental of properties in places like Los Angeles and Miami, all fueled by the difficulty of tracing cryptocurrency transactions.
Authorities fight back
This case is being led by the U.S. Attorney’s Office for the District of Columbia, in coordination with the FBI’s Washington Field Office and the IRS’s Criminal Investigation Division. The FBI offices in Los Angeles and Miami also played crucial roles in the arrests.
U.S. Attorney Matthew M. Graves, interim FBI special agent David Geist, and Kareem A. Carter, executive director of the IRS’s Criminal Investigation Division, announced the arrests. Law enforcement continues to pursue other individuals connected to the case, with more arrests expected in the coming months.
The case highlights the increasing sophistication of digital crime and the challenges posed by the anonymity of cryptocurrency. Yet, it also demonstrates the authorities’ growing ability to track and dismantle these operations, despite criminals’ efforts to cover their tracks.
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