Group allegedly spent stolen funds on sports cars, jets, mansions
Lam, described in the charges as an eighth-grade dropout, faces what authorities describe as one of the largest cryptocurrency thefts in U.S. history. Prosecutors allege he organized a “social engineering” attack that duped a Washington, D.C., resident out of bitcoin worth over $240 million in August 2024.
After the theft, the group embarked on a month-long spending spree. Lam personally spent over $569,000 in a single evening at a Los Angeles nightclub. The spending included fleets of sports cars, private jet flights, hired security guards, and rented mansions in Miami and the Hamptons.
Federal investigators allege that Lam led a network of co-conspirators in their late teens and early 20s who attempted to launder the proceeds through a sophisticated scheme designed to obscure their digital fingerprints. FBI agents took Lam into custody after the spending continued for roughly a month.