Federal authorities have collected 12 additional people through a $263 million crypto blackmail program and money laundering campaign, using cyberattacks and physical intrusions to target wealthy cryptocurrency holders, and the proceeds promote a luxury lifestyle.
A global crypto crime ring discovered
On May 15, 2025, U.S. federal prosecutors in Washington, DC, announced a replacement indictment, charging a huge $263 million cryptocurrency blackmail program to file a lawsuit against the 20-year-old Singaporean Malone Lam on earlier charges.
The operation has become active since October 2023, with networks allegedly involving U.S. and foreign nationals who meet through online gaming platforms to steal digital assets using sophisticated hackers, social engineering and even violent family invasions. A well-known case led Lin and his associates to steal more than 4,100 bitcoins worth $230 million on August 18, 2024 from victims of the creditors identified as the late Genesis cryptocurrency exchange.
The group laundered money through cryptocurrency mixers, divestitures and fake identities, although blockchain investigator Zachxbt and federal authorities tracked their activities, resulting in arrests in California and ongoing pursuits in Dubai.
The case has been intensified with concerns about crypto-related crimes, which is recent Coinbase security vulnerability It was disclosed on May 15, 2025 that hackers bribed overseas support agents and stole personal data from less than 1% of users (about 97,000 customers).
Such incidents highlight vulnerabilities in centralized exchanges, with blockchain detective Zachxbt linking Coinbase violations with social engineering scams that stole more than $45 million from users in early 2025.
Physical threats and ongoing criminal activities
The physical dimensions of the blackmail program, including a house break-in that stole hardware wallets in New Mexico in July 2024, reflects an unsettling trend towards violent trends against cryptocurrency wealth.
In Europe, at least Four kidnappings or kidnappings Over the past six months, in France, Spain and Belgium, crypto millionaires have reportedly often involved extreme violence such as torture and dismemberment. In Paris, a high-profile case saw the father of a crypto entrepreneur being kidnapped, his fingers cut off and ransoms of 50,000-70,000 euros, while French police rescued the victim and arrested five suspects.
These incidents, coupled with Coinbase’s violation of revealing user addresses and balances, have made the crypto millionaire hired private security, viewing personal protection as essential as a refrigerated wallet.
The stolen funds fueled luxury spending, with $9 million in exotic cars, $4 million in nightclub service, and millions of dollars in luxury goods such as $2 million in watches and private jets. Even if the plan continues to be planned for detention, it allegedly highlights the challenge of combating decentralized, tech-savvy criminal networks.
As the cryptocurrency industry grows, hackers suffered $2.2 billion in 2024 alone, and these cases suggest the need for stronger security measures and international cooperation to protect digital asset holders.
