US Department of Justice Charges 12 Individuals in RICO Cryptocurrency Theft Scheme Valued at $263 Million, Exposing Their Lavish Lifestyle.
A sophisticated cybercrime gang has been dismantled by the US Department of Justice after an investigation revealed they stole over $263 million in cryptocurrency and spent it lavishly. According to the recently declassified indictment this week, the criminal organization spent up to $4 million at nightclubs and $9 million on supercars, in a large-scale RICO (Racketeer Influenced and Corrupt Organizations) conspiracy.
The indictment published by Federal Prosecutor Jeanine Ferris Pirro, FBI Agent Sean Ryan, and IRS-CI Special Investigation Director Kareem A. Carter, accuses the group of US and foreign citizens of committing organized crime (racketeering), wire fraud, and obstruction of justice.
The "organization" operated from October 2023 to March 2025, originating from relationships formed on online gaming platforms. Each member had specialized roles, including hackers who stole cryptocurrency databases, "callers" using social engineering techniques to defraud victims, and "burglars" who broke into private homes to steal hardware wallets.
Sophisticated Money Laundering and Lavish Lifestyle
After stealing cryptocurrency, the perpetrators used various sophisticated money laundering methods like mixers, peel chains, and through shell companies. The money was then converted into luxurious assets and extravagantly spent.
According to the prosecutor, the gang heavily spent on renting luxurious villas, private planes, and purchasing 28 supercars worth up to $3.8 million each. Besides the $4 million spent at nightclubs, they also spent $500,000 on luxury watches and Hermès Birkin bags sent to accomplices.
One of the most notable thefts occurred in August 2024, when the gang was accused of stealing 4,100 Bit from a victim in Washington, D.C. (approximately $230 million at the time, currently equivalent to $423 million). In another incident, members broke into a house in New Mexico to steal a hardware wallet, simultaneously tracking the victim's location through iCloud.
Currently, two suspects are believed to be hiding in Dubai, while the rest were arrested in California this week. The Department of Justice also revealed that after some members were arrested, accomplices continued operations, even hiding cash in stuffed animals to transport and avoid detection.
The case is being prosecuted by Federal Assistant Prosecutor Kevin Rosenberg, with investigative coordination from FBI offices in Washington, Los Angeles, and Miami. If convicted, the defendants will face sentencing guidelines.
