The FBI has arrested two men accused of a crypto scam with losses exceeding $230 million. The arrests were part of an organized operation involving money laundering and fraud.
Arrest and Charges
Malone Lam, a 20-year-old Singaporean residing in the US, and Jeandiel Serrano, a 21-year-old resident of Los Angeles, were arrested and charged in federal courts in Florida and California. They are accused of conspiring to steal and launder more than $230 million in cryptocurrency from a victim in Washington, D.C.
Fraudulent Scheme
According to the indictments, Lam and Serrano, using aliases 'Anne Hathaway', '$$$', 'VersaceGod', and '@SkidStar', along with other co-conspirators, stole over 4,100 Bitcoin from their victim. They laundered the funds through cryptocurrency exchanges and mixing services while hiding their identities using virtual private networks (VPNs). The proceeds were used to fund a luxurious lifestyle, including the purchase of cars, expensive watches, jewelry, and luxury property rentals.
Investigation and Consequences
Blockchain security expert ZachXBT conducted an in-depth investigation into the case, detailing how Lam and Serrano used social engineering methods to steal the funds. The money was transferred through over 15 different exchanges. Some of the stolen funds have been frozen, and the investigation continues with the involvement of the FBI and IRS. The accused face lengthy prison terms if found guilty.
This case serves as a reminder of the risks associated with cryptocurrencies. Users must remain vigilant and take steps to protect their assets from fraudsters.
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