A 22-year-old man has admitted to taking part in a cryptocurrency scheme that saw nearly $250 million worth of Bitcoin stolen from a Washington DC resident in one of the largest crypto thefts recorded in the United States.
Malone Lam pleaded guilty on Tuesday to a federal racketeering conspiracy charge. He could receive a prison sentence of up to 20 years. US District Judge Colleen Kollar-Kotelly did not set a sentencing date immediately after the plea in Washington.
Prosecutors described Lam as one of the organisers of a group of young men accused of carrying out cryptocurrency-related scams from 2023. He is among 18 people charged in the wider case and is the 11th defendant to enter a guilty plea.
Authorities say the major theft occurred in August 2024, when Lam and his associates targeted a Washington resident and obtained Bitcoin valued at more than $245 million. According to prosecutors, two members of the group pretended to work for Google and cryptocurrency exchange Gemini. They allegedly manipulated the victim into providing access to his Google Drive and disclosing security information. The information enabled Lam and his associates to gain control of more than 4,100 Bitcoin.
Investigators said Lam subsequently helped convert and conceal the stolen cryptocurrency, turning much of it into cash. He then embarked on an extravagant spending spree that included luxury vehicles, expensive watches, rented mansions and lavish nights at clubs.
The FBI said Lam acquired more than 30 vehicles, among them customised Porsche, Lamborghini and Ferrari models. He also bought a watch worth about $2 million. His spending extended to nightclubs, where authorities said he once spent approximately $569,000 during a single evening at a Los Angeles venue. The lavish lifestyle reportedly continued for about a month before Lam was arrested by FBI agents in Miami.
Prosecutors allege that an off-duty law enforcement officer had warned him that investigators were preparing to arrest him. In an indictment, prosecutors cited a recorded conversation in which Lam spoke to associates from jail about his arrest, saying they had previously discussed what would happen if he was caught but had never expected the situation to become so serious.
During Tuesday’s proceedings, the judge also questioned Lam about the vehicles he had acquired with the proceeds of the theft.
When Lam said he had personally purchased some but not all of the cars, the judge asked whether he could identify those he had bought himself. Lam responded that he would need time to work out which vehicles he had personally purchased.
Because a plea agreement was reached, the next major court appearance will be the sentencing hearing once the date is officially set by the court.
