Federal Charges for Crypto Fraudsters

Federal prosecutors have formally charged two suspected crypto fraudsters, Malone Lam, 20, and Jeandiel Serrano, 21, with the theft of over $230 million worth of cryptocurrencies. This theft was first disclosed by blockchain sleuth ZachXBT.

The two were arrested last night in their respective homes in Miami and Los Angeles, following a detailed account from ZachXBT that included insider conversations planning the hack and efforts to conceal the allegedly stolen funds.

Lam, who is also known as “Anne Hathaway” and “$$$,” and Serrano, who uses “VersaceGod” and “@SkidStar,” have been charged with conspiracy to steal and launder funds. Veer Chetal, aka “Wiz,” was mentioned by ZachXBT but was not included in the FBI’s investigation.

The FBI claims that the suspected fraudsters used the stolen funds—believed to be taken from an early bitcoin investor and creditor of the defunct lending firm Genesis—for “international travel, nightclubs, luxury automobiles, watches, jewelry, designer handbags, and rental homes.”

ZachXBT first noticed the potential theft of 4,100 bitcoins in August, and subsequently collaborated with authorities and security firms Cryptoforensic Investigators and zeroShadow to trace the funds, branding the financial forensic investigation as “one of my best … of all time.”

The U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington Field Office are now engaged in an ongoing investigation, which may involve other parties.