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      Eighteen Charged in Historic RICO Case Over $263 Million Bitcoin Theft

      Federal prosecutors have charged 18 individuals in connection with the theft of over 4,100 Bitcoin, valued at approximately $263 million, from a victim in Washington, D.C. This case marks the first significant application of racketeering charges to a cryptocurrency theft scheme. The lead defendant, Malone Lam, an eighth-grade dropout from Singapore, and his co-defendants allegedly impersonated officials from Google and Gemini to deceive the victim into providing access to their digital wallet.

      The theft occurred on August 18, 2024, and the investigation led to arrests beginning the following month after one co-defendant failed to conceal their IP address. This oversight provided law enforcement with a crucial lead. Following the theft, Lam reportedly spent $4 million in a month on luxury items, including a single nightclub tab of $569,000, which further drew attention to the group.

      The defendants are accused of using social engineering tactics to extract sensitive information from their targets and laundering the stolen funds through various cryptocurrency exchanges. The application of the Racketeer Influenced and Corrupt Organizations Act (RICO), originally designed to combat organized crime, to this case signifies a notable expansion of its use in the realm of digital crime.

      Despite the Department of Justice disbanding its specialized cryptocurrency enforcement unit in 2025, this case illustrates that significant financial crimes in the crypto space can still be prosecuted effectively. The average prison sentence of six years already imposed on several money launderers involved in the scheme indicates a serious approach by the courts towards crypto-related offenses, highlighting ongoing vulnerabilities in digital asset security.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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