Hotnews No. 96 Two Men Arrested in Connection with $230 Million Cryptocurrency Theft

In a significant development in the world of cryptocurrency, the FBI has arrested two men in connection with a complex scam that resulted in the theft of over $230 million worth of Bitcoin from a single victim. The suspects, 20-year-old Malone Lam from Miami and 21-year-old Jeandiel Serrano from Los Angeles, are facing serious charges, including conspiracy to commit theft and money laundering.

The incident reportedly occurred in August 2024 when the suspects allegedly posed as Google Support and contacted their intended victim in Washington, D.C., using a spoofed phone number. By tricking the victim into sharing their screen, they gained access to private keys necessary for accessing the cryptocurrency wallet. This breach allowed them to transfer significant funds into a wallet under their control after deceiving the victim into resetting their two-factor authentication.

Following their arrest last week, captured on social media showing armed FBI agents conducting a raid in Miami, Lam and Serrano are accused of conspiring with others to steal cryptocurrency and launder the stolen proceeds through various exchanges and mixing services. Authorities noted that the suspects employed sophisticated tactics to disguise their activities, including the use of virtual private networks (VPNs) and “peel chain” techniques, which break down large transactions into smaller, harder-to-trace amounts.

The indictment details how the suspects allegedly spent their ill-gotten gains on extravagant lifestyles, including international travel, luxury cars, designer jewelry, and nightlife. Cryptocurrency investigator ZachXBT highlighted apparent operational security lapses on the part of the suspects, noting that they recorded themselves during the heist in a group chat.

As this case develops, the investigation sheds light on the growing prevalence of cryptocurrency fraud and the challenges law enforcement faces in tracking and apprehending those involved. The successful arrest of Lam and Serrano serves as a warning to potential investors, emphasizing the importance of vigilance and thorough verification of any platform before committing funds.

Your DefendMe Team