MIAMI — Two men from South Florida and California were arrested by the FBI this week for their alleged involvement in a nearly quarter-billion cryptocurrency scam.
In an indictment unsealed by the federal agency on Thursday, 20-year-old Malone Lam of Miami and 21-year-old Jeandiel Serrano of Los Angeles were charged with conspiracy to steal and launder over $230 million in cryptocurrency from a victim in Washington, D.C., the FBI shared in a statement.
Lam, a Singaporean citizen who went by the online monikers “Anne Hathaway” and “$$$”, and Serrano, who uses “VersaceGod” and “@SkidStar,” were arrested Wednesday night and appeared in U.S. District Court for the Southern District of Florida and the Central District of California, respectively, on Thursday.
Videos shared on social media on Thursday showed federal authorities raiding a luxury home in Miami, where CBS News Miami confirmed it was part of the case.
According to the indictment, Lam, Serrano and others allegedly conspired to carry out crypto thefts and to launder the stolen cryptocurrencies through exchanges and mixing services. The conspirators would “fraudulently gain access to victim cryptocurrency accounts and then transfer victim funds into their possession,” the FBI stated.
The FBI stated that the alleged conspirators laundered the proceeds, including by moving the funds through various mixers and exchanges by using pass-through wallets, virtual private networks (VPNs) and “peel chains” — a technique used to launder a large amount of cryptocurrency through a lengthy series of minor transactions — to mask their identities.
According to the indictment, Lam and Serrano then allegedly spent the laundered crypto proceeds on international travel, nightclubs, luxury cars, watches, jewelry, designer handbags and rental homes in Los Angeles and Miami.
In one instance on Aug. 18, Lam, Serrano and the others allegedly contacted a victim in D.C. and defrauded them of over 4,100 Bitcoin worth over $230 million at the time, the FBI stated.
The case is still under investigation.
