Two Arrested for $230 Million Bitcoin Heist from Washington, DC Resident
In a significant cybercrime case, two young men have been arrested and charged for stealing $230 million worth of Bitcoin from a resident of Washington, DC. According to the U.S. Attorney’s Office for the District of Columbia, the men—Malone Lam (20) and Jeandiel Serrano (21)—were arrested in September 19 for conspiracy to steal and launder over 4,100 Bitcoin (BTC).
The victim, who has not been named, is believed to be a creditor of Genesis, a cryptocurrency lending firm that filed for bankruptcy earlier this year. At that time, the stolen Bitcoin was worth $230 million, making it one of the largest individual cryptocurrency thefts ever recorded.
A Highly Sophisticated Heist
The arrest came after an extensive investigation by federal authorities, who revealed that the two men used social engineering tactics to gain access to the victim’s cryptocurrency accounts. Blockchain investigator ZachXBT, who aided law enforcement in the investigation, characterized the attack as a “highly sophisticated social engineering attack” in a post on X (formerly Twitter) on September 19.
The investigation revealed that the attackers posed as Google Support using a spoofed phone number, tricking the victim into giving them access to personal accounts. Afterward, they posed as Gemini Support (the cryptocurrency exchange used by the victim) and convinced the victim to reset two-factor authentication (2FA), ultimately leading to the transfer of Bitcoin to a compromised wallet.
“Massive $230 million Bitcoin theft uncovered! Two men charged with sophisticated social engineering attacks targeting a Genesis creditor. Blockchain forensics played a key role in tracing stolen funds. — ZachXBT #CryptoCrime #BitcoinTheft”
The stolen Bitcoin was then moved across several exchanges, initially making it difficult to trace.
Lavish Lifestyle Funded by Stolen Bitcoin
Once the Bitcoin was transferred, Lam and Serrano reportedly spent their ill-gotten wealth on a luxurious lifestyle. Their spending included international travel, nightclubs, luxury cars, designer watches, jewelry, and designer handbags. They also rented properties in Los Angeles and Miami, financed by the stolen cryptocurrency.
The thieves allegedly transferred the stolen Bitcoin across multiple accounts, making it difficult to trace. At one point, the funds were split into several accounts and laundered through more than 15 exchanges, where they were converted between Bitcoin, Litecoin, Ethereum, and Monero, ZachXBT added.
Ongoing Investigation and Law Enforcement Efforts
While much of the stolen cryptocurrency was quickly laundered, federal authorities have made progress in recovering the funds. Thanks to the collaboration with Web3 security firm zeroShadow, crypto forensic investigators, and the Binance Security Team, more than $9 million in stolen funds has been frozen, and $500,000 has already been returned to the victim.
The investigation is ongoing, and authorities are still working to track down additional suspects involved in the heist. A third suspect, identified only as “Wiz”, has been linked to the scheme through Ethereum transactions. Blockchain analysis showed that Serrano and “Wiz” recently obtained more than $41 million from a pair of cryptocurrency exchanges.
The U.S. Attorney’s Office, the FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington Field Office are continuing to pursue the investigation, and more arrests are expected in the coming months.
I am Toby Rothschild, Co-Founder of Spearmint and author at Coinography, and a strategist focused on advancing Web3 innovation, digital ecosystems, and the future of decentralized technology. I combine product thinking, creative leadership, and deep interest in emerging trends to help shape how individuals and organizations interact with the next generation of digital systems.
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