The U.S. Department of Justice (DOJ) Charges New Defendants Under RICO Act

The U.S. Department of Justice (DOJ) is charging a dozen new defendants under the RICO Act for allegedly taking part in a multimillion-dollar crypto theft.

Details of the Charges

In a new press release, the DOJ says that it is charging an additional 12 defendants for allegedly participating in a crypto racketeering conspiracy that netted $263 million, bringing the total number of those accused to 14.

Arrests and Suspects

While the majority of them have been arrested, two of them remain at large and are suspected to be in Dubai. They are all charged with RICO conspiracy, conspiracy to commit wire fraud, money laundering, and obstruction of justice.

Background of the Case

Last September, two California men – Malone Lam and Jeandiel Serrano – were arrested and charged in connection with the plot. Authorities say the men stole 4,100 Bitcoin (BTC) worth about $230 million at the time from an unnamed Washington, D.C., victim and then attempted to obfuscate and launder the funds using advanced techniques.

Details of the Criminal Operation

According to the press release, the duo was not alone and had a team behind them composed of hackers, organizers, money launderers, callers, and residential burglars that targeted hard wallets, who met through online gaming platforms and were in operation since October 2023.

Use of Stolen Funds

The indictment reveals that the defendants used the stolen funds to purchase expensive luxury items, such as homes, cars, handbags, watches, jewelry, nights out at nightclubs ranging up to $500,000 per evening, as well as private security guards and private jets for members of the enterprise.

Potential Sentences

If found guilty, the defendants would be handed a sentence determined by the court based on sentencing guidelines.

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