Blab Crypto
US Authorities Arrest 18 in $240 Million Bitcoin Heist, Highlighting Rise of Social-Engineering Scams
In a high‑stakes cyber heist that unfolded last summer, U.S. authorities seized 18 suspects in a $240 million bitcoin theft that sent shockwaves through the crypto community.
The crime, which took place in August 2024, involved a network of young men, including 22‑year‑old Malone Lam from Singapore, 21‑year‑old Jeandiel Serrano of Los Angeles, and 19‑year‑old Veer Chetal. Prosecutors say the group stole more than 4,100 bitcoins—worth roughly $240 million at the time—from a Washington, D.C. resident, referred to in court filings as “Victim 7.”
The theft was executed through a sophisticated social‑engineering scheme. The attackers posed as Google and Gemini representatives, convincing the victim to share his Google Drive credentials and two‑factor authentication codes. With that access, the group siphoned the bitcoin from the victim’s wallet and moved the coins through a series of cryptocurrency exchanges and money‑laundering services.
A key detail emerged when investigators traced an IP address that had been used to create an exchange account holding nearly $30 million of the stolen crypto. The IP was linked to an Encino, California, rental apartment, providing a tangible geographic anchor to the operation.
After the theft, the conspirators launched an extravagant spending spree. Lam reportedly spent $4 million in a month at Los Angeles nightclubs, purchased a $2 million watch, and bought more than 30 luxury vehicles, including custom Porsches, Lamborghinis, and Ferraris. Serrano was arrested at Los Angeles International Airport on September 18, 2024, after he was seen wearing a $500,000 watch. Chetal’s parents were kidnapped in Danbury, Connecticut, a week after the heist, in an attempt to force him to surrender his share of the stolen bitcoin. The kidnapping plot was foiled when witnesses alerted police.
Lam was arrested at a Miami mansion on the same day as Serrano. An off‑duty officer had tipped the FBI that authorities were approaching. Lam’s arrest followed a month of lavish spending, including a $569,000 night out at a Los Angeles club. He is scheduled for a plea‑agreement hearing on Tuesday, 2026‑09‑12. Prosecutors estimate that a conviction would result in a minimum 14‑year sentence.
The case sits within a broader trend of crypto‑related fraud. Complaints of cryptocurrency investment fraud to the FBI rose by nearly 50 % in 2025. The Justice Department disbanded a unit that had focused on crypto crimes in 2024, and the current administration has adopted a more hands‑off regulatory stance. Cybersecurity researcher Allison Nixon, who tracks the underground “Com” hacker community, has called for increased law‑enforcement resources to counter the growing threat.
The 18 defendants include Lam, Serrano, Chetal, and several money‑laundering co‑conspirators. Three of the co‑conspirators have already been sentenced to prison terms of approximately six years. Chetal pleaded guilty in November 2024 and awaits sentencing. Serrano’s charges remain pending, and a plea deal has not yet been announced.
The investigation continues to uncover how the stolen bitcoin was moved through multiple jurisdictions. The FBI’s seizure of $37 million in stolen crypto from Chetal’s Brunswick, New Jersey, apartment on September 9, 2024, demonstrates the scale of the laundering effort. The case illustrates the vulnerability of individual investors to sophisticated social‑engineering attacks and the challenges regulators face in keeping pace with rapidly evolving crypto‑crime tactics.
As the court proceedings advance, the case will likely set precedents for how U.S. authorities prosecute large‑scale crypto thefts and the extent to which law‑enforcement agencies can dismantle transnational laundering networks. The outcome will also inform future regulatory discussions on anti‑money‑laundering measures for digital assets.
The crime, which took place in August 2024, involved a network of young men, including 22‑year‑old Malone Lam from Singapore, 21‑year‑old Jeandiel Serrano of Los Angeles, and 19‑year‑old Veer Chetal. Prosecutors say the group stole more than 4,100 bitcoins—worth roughly $240 million at the time—from a Washington, D.C. resident, referred to in court filings as “Victim 7.”
The theft was executed through a sophisticated social‑engineering scheme. The attackers posed as Google and Gemini representatives, convincing the victim to share his Google Drive credentials and two‑factor authentication codes. With that access, the group siphoned the bitcoin from the victim’s wallet and moved the coins through a series of cryptocurrency exchanges and money‑laundering services.
A key detail emerged when investigators traced an IP address that had been used to create an exchange account holding nearly $30 million of the stolen crypto. The IP was linked to an Encino, California, rental apartment, providing a tangible geographic anchor to the operation.
After the theft, the conspirators launched an extravagant spending spree. Lam reportedly spent $4 million in a month at Los Angeles nightclubs, purchased a $2 million watch, and bought more than 30 luxury vehicles, including custom Porsches, Lamborghinis, and Ferraris. Serrano was arrested at Los Angeles International Airport on September 18, 2024, after he was seen wearing a $500,000 watch. Chetal’s parents were kidnapped in Danbury, Connecticut, a week after the heist, in an attempt to force him to surrender his share of the stolen bitcoin. The kidnapping plot was foiled when witnesses alerted police.
Lam was arrested at a Miami mansion on the same day as Serrano. An off‑duty officer had tipped the FBI that authorities were approaching. Lam’s arrest followed a month of lavish spending, including a $569,000 night out at a Los Angeles club. He is scheduled for a plea‑agreement hearing on Tuesday, 2026‑09‑12. Prosecutors estimate that a conviction would result in a minimum 14‑year sentence.
The case sits within a broader trend of crypto‑related fraud. Complaints of cryptocurrency investment fraud to the FBI rose by nearly 50 % in 2025. The Justice Department disbanded a unit that had focused on crypto crimes in 2024, and the current administration has adopted a more hands‑off regulatory stance. Cybersecurity researcher Allison Nixon, who tracks the underground “Com” hacker community, has called for increased law‑enforcement resources to counter the growing threat.
The 18 defendants include Lam, Serrano, Chetal, and several money‑laundering co‑conspirators. Three of the co‑conspirators have already been sentenced to prison terms of approximately six years. Chetal pleaded guilty in November 2024 and awaits sentencing. Serrano’s charges remain pending, and a plea deal has not yet been announced.
The investigation continues to uncover how the stolen bitcoin was moved through multiple jurisdictions. The FBI’s seizure of $37 million in stolen crypto from Chetal’s Brunswick, New Jersey, apartment on September 9, 2024, demonstrates the scale of the laundering effort. The case illustrates the vulnerability of individual investors to sophisticated social‑engineering attacks and the challenges regulators face in keeping pace with rapidly evolving crypto‑crime tactics.
As the court proceedings advance, the case will likely set precedents for how U.S. authorities prosecute large‑scale crypto thefts and the extent to which law‑enforcement agencies can dismantle transnational laundering networks. The outcome will also inform future regulatory discussions on anti‑money‑laundering measures for digital assets.
