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The party’s over for crypto scammers who went on a spending spree after a $240M bitcoin theft

In Legal News, News
September 08, 2026
Picture of Malone Lam's face looking straight at camera in what appears to be a mug shot.

Many people are waiting today to see what happens in a federal court case involving a young man named Malone Lam. He was part of a group that pulled off a major crypto heist but then bragged about it and left a trail leading right back to them. As ABC News reports:

They pulled off one of the largest cryptocurrency thefts in U.S. history, duping a stranger out of bitcoin worth over $240 million. They tried to hide their digital fingerprints, carrying out a sophisticated scheme to launder the proceeds.

And then the party started.

The scammers — a network of young men in their late teens or early 20s — celebrated the August 2024 heist by embarking on a wild spending spree.

[…]

Their bender lasted a month before FBI agents arrested Lam on charges that he organized a “social engineering” attack on the Washington, D.C., resident. Lam, an eighth-grade dropout from Singapore, has a plea agreement hearing set for Tuesday. His conviction would be a capstone for the government’s investigation.

The charges against Lam and 17 others are an extreme example of an increasingly common form of cybercrime. Complaints of cryptocurrency investment fraud to the FBI rose by nearly 50% in 2025, while Republican President Donald Trump’s administration largely abandoned a regulatory crackdown on the volatile industry.

Read more at ABC.