Since the authorities busted Malone Lam last year, when he, along with members of his group, stole more than $263 million in crypto through social engineering, wire fraud, and money laundering schemes, the ongoing investigations have now revealed a wider scheme involving 12 other individuals.
On 15 May 2025, a court document revealed Lam and at least 12 others to be a part of a “social engineering enterprise.” The members reportedly met through online gaming portals and schemed together to identify and scam high-value crypto holders.
The indictment names 20-year-old Lam and 21-year-old Conor Flansburg as the two main accused. Lam operated under numerous online aliases, including “SSS,” “King Greavys,” and “Anne Hathaway,” to orchestrate crypto heists. Authorities have booked all 13 suspects under the Racketeer Influenced and Corrupt Organisations (RICO) Act.
The syndicate’s modus operandi included stealing crypto wallets, converting the assets into US dollars, and laundering the proceeds. In one such instance, Lam and his group stole 4100 bitcoins from a single victim in the US.
Explore: Best Meme Coin ICOs to Invest in May 2025
Syndicate was Functional Even with Lam Behind Bars
The FBI arrested Lam, who was central to the scheme, in September 2024 while he was working with Jeandiel Serrano, who has not been named in the indictment.
Authorities claim that the mastermind (Lam) continued to run operations from his detention, allegedly communicating with other members to pass and receive information.
The other suspects are Marlon Ferro, Hamza Doost, Kunal Mehta, Ethan Yarally, Cody Demirtas, Aakaash Anand, Evan Tangeman, Joel Cortes, Tucker Desmond, and two members named Fnu Lnu 1 and 2, with most of them having aliases.
The charges include racketeering, conspiracy to commit wire fraud, money laundering, and obstruction of justice. On 19 May 2025, Lam appeared in a Washington, DC, court where he pleaded not guilty to his indictment.
Reportedly, he rejected a plea deal after consulting with his legal team. If convicted, however, Lam faces a minimum 20-year jail term, a fine of up to $250,000, or up to twice the amount gained from his scams.
His trial is scheduled to begin in October 2025.
this clout monster from LA “ofye” is one of the biggest scammers, pumpfun ruggers, larpers in history.
heard of malone lam? they were heavily associated. do not pay for “insider calls”, sol for tg invites, or even drop 0.001 sol into anything related to ofye. block him if you… pic.twitter.com/D4wPgq6E1n
— Oxylana (@oxysolana) January 20, 2025
Explore: Top Solana Meme Coins to Buy in 2025
Lam & Co’s Standard Modus Operandi
The criminal syndicate operated from October 2023 to March 2025, conducting crypto thefts in the US and abroad. Members had specific roles, including database hacking, organising, identifying targets, making scam calls, money laundering, and even burglary.
Organiser roles, typically filled in by Lam and Flansburg, identified high-value targets, after which the syndicate members, posing as support staff from a reputable virtual exchange, would work to trick the victims into giving them sensitive information, legitimising the fraud by sending fake notifications.
Furthermore, the group would also resort to burglary if they found substantial crypto holdings on physical devices. In one such instance, a member of their group travelled to New Mexico and broke into a victim’s home that Lam tracked via iCloud.
The group then laundered the stolen crypto through offshore exchanges, converted it, and distributed it among other members through cash and wire transfers.
Explore:The 12+ Hottest Crypto Presales to Buy Right Now
Syndicate Covered their Tracks Through Straw Owners and Shell Companies
Lam and co used straw owners and shell companies to hide their ownership of homes and cars. In one instance, Lam attempted to tour a $3 million home, but the realtor advised him against it since he had placed the property under someone else’s name to obscure Lam’s ownership.
Furthermore, insider messages between two members revealed how the group disguised and concealed their exotic car ownership. One member said, “Our goal is to cover our tracks in a way that if anything comes back ever, we are covered and have no stress.”
What’s shocking, however, is that the group also received insider notifications from off-duty law officers. In September 2024, an officer tipped off a money exchanger that the federal agencies were investigating the group. The same month, Lam reportedly obtained details about the investigation and threw his phone into Biscayne Bay upon learning about his impending arrest.
Explore: 20+ Next Crypto to Explode in 2025
Group Blew Over $500,000 a Night at Nightclubs
Lam and his group indulged in a lavish lifestyle, renting luxury homes in Los Angeles, the Hamptons and Miami. They flew private jets and hired private security. They blew over $500,000 a night at nightclubs, gifted branded handbags at parties and wore high-end clothing and watches.
The group even purchased firearms to protect themselves from rival cybercrime groups. Authorities are now planning to seize 28 luxury cars, including Lamborghinis, Porsches, Rolls-Royces, and Ferraris, worth between $100,000 and $3.8 million. Additionally, the forfeiture list includes more than 90 luxury items, including Louis Vuitton pillows and designer shoes.
The court documents also revealed that stolen funds were used to fund Lam’s legal defence.
Explore: 9+ Best High-Risk, High-Reward Crypto to Buy in May 2025
Key Takeaways
- Lam faces 20 years in prison if convicted
- The group would resort to burglary if they found substantial crypto holdings on physical devices
- Lam’s trial will commence from October of this year
The post Who is Malone Lam? 13 Indicted in $263M RICO Conspiracy appeared first on 99Bitcoins.