Party’s over for crypto scammers who went on a spending spree after a $240 million bitcoin theft

WASHINGTON (AP) – They pulled off one of the largest cryptocurrency thefts in U.S.

Key points

• They purchased fleets of sports cars, flew on private jets, hired security guards and rented mansions in Miami and the Hamptons.
• Their bender lasted a month before FBI agents arrested Lam on charges that he organized a "social engineering" attack on the Washington, D.C., resident.

What happened

WASHINGTON (AP) – They pulled off one of the largest cryptocurrency thefts in U.S. History, duping a stranger out of bitcoin worth over $240 million. They tried to hide their digital fingerprints, carrying out a sophisticated scheme to launder the proceeds. And then the party began.

Notably, the scammers – a network of young men in their late teens or early 20s – celebrated the August 2024 heist by embarking on a wild spending spree. They purchased fleets of sports cars, flew on private jets, hired security guards and rented mansions in Miami and the Hamptons. An alleged ringleader, 22-year-old Malone Lam, spent over $569, 000 in one evening at a Los Angeles night club.

Their bender lasted a month before FBI agents arrested Lam on charges that he organized a "social engineering" attack on the Washington, D.C., resident. Lam, an eighth-grade dropout from Singapore, has a plea agreement hearing set for Tuesday. His conviction would be a capstone for the government's investigation.

The bottom line

For now, partys over for crypto scammers who went on a spending spree after remains the part of the story worth watching, and further updates are likely as more details are confirmed.