Singapore National Sentenced for Orchestrating $245 Million Cryptocurrency Theft Network

This Justice Department court filing in the case against Hamza Doost and Kunal Mehta, that includes a photo of Malone Lam, is photographed Friday, Sept. 4, 2026. (AP Photo/Jon Elswick)

Copyright 2026 The Associated Press. All rights reserved.

Malone Lam, a 22-year-old Singapore national, has pleaded guilty to RICO conspiracy charges in Federal District Court in Washington DC for orchestrating a sophisticated cryptocurrency theft operation. Operating under aliases including Anne Hathaway, King Greavy, and $$$, Lam drew an unusual comparison from Judge Alicia O. Valle, who likened him to the 1986 film character Ferris Bueller, stating in court, “As I was listening to the evidence, I could only think of Ferris Bueller gone bad.”

Arrested in September 2024 in connection with one of history’s largest cryptocurrency heists, Lam and his associates stole and laundered over $245 million in cryptocurrency between 2023 and 2025. He becomes the 11th conviction in this case, with seven additional defendants still facing charges. The Justice Department prosecuted the case under RICO statutes, treating the thefts, money laundering, and related crimes as elements of a single criminal enterprise.

INDIVIDUAL RESPONSIBILITIES OF THE GANG MEMBERS

The gang comprised primarily young adults aged 18 to 20, distributed across California, Connecticut, New York, Florida, and international locations, who connected through online gaming platforms. The organization developed specialized roles: some members operated as database hackers targeting cryptocurrency-related information, while others purchased stolen data from dark web marketplaces. Recruitment extended to social media and crypto forums, with members identifying and profiling potential victims. Once targets were selected, associates impersonated security professionals, employing social engineering tactics to extract passwords, private keys, and seed phrases needed to drain cryptocurrency wallets. After thefts, separate team members handled money laundering to obscure the trail.

BURGLARY

Though most thefts occurred digitally, the gang employed physical burglary in at least one case. Member Marlon Ferro broke into a victim’s residence to steal a portable hard drive containing cryptocurrency wallet data. Ferro received a 78-month prison sentence in May 2026 for his participation in the enterprise.

MONEY LAUNDERING

The money laundering operation proved substantially more complex than the thefts themselves. The gang employed multiple techniques including cryptocurrency mixers, which pooled and redistributed funds to obstruct blockchain tracing; exchanges, where they moved stolen assets in varying amounts to disguise their origin; peel chains, routing funds through sequential transactions with portions extracted at each stage; and pass-through wallets, creating multiple layers before converting to fiat currency. Virtual private networks (VPNs) masked their IP addresses and physical locations throughout these transactions.

Laundering proceeds extended to acquiring luxury vehicles worth millions, purchased through shell companies established by gang members. Cryptocurrency was also converted to physical cash and concealed within Squishmallows, plush collectible stuffed animals, for bulk transportation.

BEGINNING OF THE END

The gang’s most significant coup occurred in August 2024 when they stole Bitcoin valued at over $240 million from a single victim by impersonating support agents of the legitimate Gemini cryptocurrency exchange.

This massive theft ultimately precipitated the gang’s downfall. Following the heist, Lam and associates engaged in a month of extravagant spending, including private jet travel, luxury automobiles, diamond jewelry, and high-end watches. This conspicuous consumption drew law enforcement attention, leading to arrests in September 2024. The FBI’s blockchain analysis capabilities proved decisive, as converting stolen cryptocurrency to luxury purchases created traceable connections to the perpetrators.

Even while detained pending trial in 2024, Lam continued directing gang operations, with stolen funds covering his legal defense. Now convicted and awaiting sentencing, Lam might consider licensing his story for film adaptation, though Matthew Broderick would be too aged to portray him.

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