Two individuals were taken into custody in Miami, facing charges of conspiring to steal and launder a staggering $230 million worth of cryptocurrency by exploiting weaknesses in digital currency exchanges and mixing services.
Two defendants, Malone Lam, a 20-year-old individual known by aliases including “Greavys,” “Anne Hathaway,” and “$$$,” and Jeandiel Serrano, a 21-year-old person referred to as “Field,” “VersaceGod,” and “@SkidStar,” were taken into custody by FBI agents and appeared in court on Thursday.
On August 18, hackers launched a successful attack, stealing over 4,100 Bitcoins from a Washington, D.C.-based victim with a value exceeding $230 million at the time.
According to reports, Lam, Serrano, and other individuals are suspected of gaining unauthorized access to victims’ cryptocurrency accounts, transferring funds to digital wallets under their control prior to laundering the illicit gains.
Criminals exploited a complex network of digital currency mixers, exchanges, “peel chains,” pass-through wallets, and virtual private networks (VPNs) to conceal their identities and locations throughout the laundering process.
The stolen cryptocurrency was allegedly used to fund a lavish lifestyle, with the defendants reportedly splurging on international travel, luxury cars, high-end timepieces, designer handbags, and exclusive nightclubs in Los Angeles and Miami.
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A seasoned crypto fraud investigator, ZachXBT, recently uncovered a third suspected perpetrator, operating under the pseudonym “Wiz.” According to his findings, this criminal collective targeted a Genesis cryptocurrency exchange creditor, exploiting spoofed phone numbers and masquerading as Google and Gemini customer support to breach account security.
While pretending to be a Gemini assist consultant, the scammer allegedly compromised an account, duped the victim into resetting two-factor authentication and sharing their screen via AnyDesk remote desktop software, ultimately gaining access to private keys stored in Bitcoin Core wallets and siphoning off funds.
A complex transaction pattern emerged, with $243 million being dispersed across multiple platforms on each occasion prior to funds rapidly shifting between 15+ exchanges, with transactions involving Bitcoin, Litecoin, Ethereum, and Monero.
A follow-up probe uncovered a nexus of Ethereum addresses affiliated with Serrano and Wiz, which collectively accumulated more than $41 million from two exchanges in recent weeks. Despite concerted attempts to conceal their activities, investigators successfully tracked down the laundered funds after they were utilized to acquire high-end vehicles, timepieces, and precious gems.
Funds were swiftly laundered through a complex network of cryptocurrency exchanges, with illicit transactions jumping between Bitcoin, Litecoin, Ethereum, and the notoriously opaque Monero.
In a shocking revelation, ZachXBT exposed Wiz’s true identity after discovering him during a live screen-sharing session, which was captured on video and shared publicly.
Here’s a non-public video recording showcasing the real-time responses from several key actors upon receipt of $238 million.
Theft txn hash
The transaction occurred on August 19th at 4:05 a.m. Coordinated Universal Time with a value of 4064 Bitcoin.
4b277ba298830ea538086114803b9487558bb093b5083e383e94db687fbe9090— ZachXBT (@zachxbt)
While many funds had been covertly converted into Monero for enhanced anonymity, a critical misstep by Wiz and Serrano led them to incorrectly associate their laundered funds with the original stolen amounts.
The FBI conducted surveillance on Lam and Serrano, ultimately arresting them following a pattern of excessive spending and public displays of wealth documented through their social media profiles and eyewitness accounts of associates in both Los Angeles and Miami.
