US uncovers group that stole $263 million in cryptocurrency

Key points:

• 22-year-old Evan Tangeman pleaded guilty in a case involving the theft of $263 million in cryptocurrency.
• Three other participants have been charged under the RICO Act; two have been detained in Dubai.
• The group used stolen databases and social engineering to hack hardware wallets and launder cryptocurrency.

The US Attorney’s Office reported that 22-year-old Evan Tangeman of California pleaded guilty to participating in a criminal scheme to steal cryptocurrency. He became the ninth defendant to plead guilty. He will be sentenced on April 24, 2026.

The investigation also revealed new indictments against three other participants: Nicholas Dellecave, Mustafa Ibrahim, and Danish Zulfiqar. All three are charged with conspiracy under the RICO Act. Two were arrested in Dubai, and the third in Miami.

How the scheme worked

According to the investigation, the group, called Social Engineering Enterprise, began operating in October 2023 and included members from various US states and abroad. It used stolen databases, phishing, and telephone manipulation to gain access to victims’ hardware crypto wallets.

The hackers, organizers, and perpetrators acted as a single entity: some found targets, others called victims, and still others hacked devices and wallets. Tangeman was responsible for cashing out: he converted cryptocurrency into cash, rented luxury real estate under fake names, and organized logistics within the United States.

After the arrest of the alleged leader of the group, Malone Lam, Tangeman attempted to destroy digital traces: he deleted data from cameras and tried in every way to obstruct the FBI.

The suspects spent the stolen millions on renting houses in Los Angeles, Miami, and the Hamptons, nightclub services costing hundreds of thousands of dollars per evening, expensive cars, watches, and private jets.

The total damage amounted to 4100 BTC — $263 million at the exchange rate at the time of the theft. Now it is already more than $368 million.

Earlier, 45-year-old Kunal Mehta from California pleaded guilty in the same case — he became the eighth member of the group to admit his participation in the scheme. According to the prosecution, Mehta laundered at least $25 million of the stolen funds by converting cryptocurrency into cash and conducting transactions through shell companies. He also helped members of the network register luxury cars and real estate under fictitious entities, concealing their origin and real value.