Bitrabo Editorial
Two individuals, one a Singaporean living in the United States and the other an American citizen, have been accused of a plot to steal and launder over $230 million worth of cryptocurrency.
The suspects are Malone Lam, a 20-year-old Singaporean splitting his time between Miami and Los Angeles, and Jeandiel Serrano, a 21-year-old from Los Angeles. Both were taken into custody by the FBI on Wednesday night.
Overview of the Cryptocurrency Fraud
As per a statement from the U.S. Department of Justice, Lam and Serrano illegally obtained over 4,100 Bitcoin, which was valued at around $230 million, from a victim based in Washington D.C.
Lam, who uses online aliases like “Anne Hathaway” and “$$$”, and Serrano, identified by names such as “VersaceGod” and “@SkidStar”, appeared in court for the first time on Thursday.
The allegations claim that the duo spearheaded a theft and laundering operation targeting crypto accounts of victims, enabling them to redirect funds into their possessions. This fraudulent activity reportedly began in August.
Their operation utilized advanced methods to disguise the origins of the stolen cryptocurrency. They allegedly leveraged various cryptocurrency exchanges and mixing services to camouflage the movement of the illicitly acquired Bitcoin.
A notable technique in their laundering scheme involved employing “peel chains” — a process that breaks down large cryptocurrency sums into smaller transactions to obscure tracking efforts.
Moreover, they enhanced their anonymity utilizing virtual private networks (VPNs) and intermediary wallets, which assisted in evading detection while cleansing the stolen funds.
Execution of the Scam
Blockchain researcher ZachXBT revealed the methods employed in this fraud. On social media platform X, he discussed how the accused utilized “advanced social engineering” tactics to deceive their targets.
2/ Incident Summary: On August 19, 2024 the threat actors targeted a single Genesis creditor by:
1) Calling as Google Support via spoofed number to compromise personal accounts
2) Calling after as Gemini support claiming account is hacked
3) Social engineered victim into… pic.twitter.com/gemvrdRLNm
— ZachXBT (@zachxbt) September 19, 2024
This fraud, amounting to $230 million, focused on a creditor from the now-closed Genesis trading firm. The culprits posed as Google support representatives using a fake number to manipulate the victim into resetting their two-factor authentication, which ultimately enabled the transfer of cryptocurrency to their accounts.
Reportedly, the stolen cryptocurrency was utilized to finance an extravagant lifestyle that included lavish spending on luxury items and experiences.
Authorities indicated that Lam and Serrano indulged in high-end travel, exclusive nightclub visits, luxury cars, expensive jewelry, designer handbags, and rental properties in Miami and Los Angeles, funded by their illegal activities.
Their conspicuous spending habits raised red flags, prompting further investigations by law enforcement.
Featured image created by DALL-E, Chart from TradingView