In a significant development, US authorities have unveiled a criminal organization responsible for stealing a staggering $263 million in cryptocurrency. The case has seen a member, 22-year-old Evan Tangeman from California, plead guilty, marking a pivotal moment in the ongoing investigation.
The US Attorney”s Office reported that Tangeman”s guilty plea makes him the ninth defendant to admit involvement in this extensive scheme. His sentencing is scheduled for April 24, 2026. Alongside Tangeman, new charges have been filed against three additional participants: Nicholas Dellecave, Mustafa Ibrahim, and Danish Zulfiqar, all facing conspiracy charges under the RICO Act. Notably, two of the suspects were apprehended in Dubai, while the third was arrested in Miami.
Details of the Criminal Operation
The group, identified as the Social Engineering Enterprise, commenced its activities in October 2023, enlisting members from various US states and international locations. Utilizing stolen databases, phishing techniques, and social engineering tactics, they successfully targeted victims” hardware crypto wallets. The operation was meticulously organized, with members assigned specific roles: some identified potential targets, others engaged victims via phone, and additional participants executed the hacking.
Tangeman”s role was particularly critical as he managed the cash-out process, converting stolen cryptocurrency into cash. He also facilitated the rental of luxury properties using fictitious identities and coordinated logistics across the United States. Following the arrest of the group”s alleged leader, Malone Lam, Tangeman attempted to erase digital evidence, including deleting data from surveillance cameras and obstructing FBI efforts.
Expenditure of Stolen Funds
The illicit profits from this theft were extravagantly spent on lavish rentals in cities such as Los Angeles, Miami, and the Hamptons. The suspects indulged in nightclub expenses amounting to hundreds of thousands of dollars per evening, along with purchasing luxury vehicles, high-end watches, and even private jet services. The total loss incurred from this operation amounts to 4100 BTC, which was valued at $263 million at the time of the crime.
As of now, the value of the stolen cryptocurrency has surged, now exceeding $368 million. In a related case, Kunal Mehta, a 45-year-old from California, also pleaded guilty, becoming the eighth member to acknowledge his role in the scheme. Prosecutors allege that Mehta laundered a minimum of $25 million from the stolen funds, converting cryptocurrency to cash and facilitating transactions through shell companies. He was instrumental in helping other members of the network register luxury vehicles and properties under false identities, effectively hiding their origins and true market value.
