The $240m bitcoin party that ended up in a US court

There are easier ways to spend a fortune than stealing $240mn in bitcoin. But few are quite as conspicuous. In August 2024, a group of young crypto scammers allegedly stole more than 4,100 bitcoin from a wealthy investor in Washington after posing as representatives of Google and the Gemini cryptocurrency exchange.

What followed was less an exercise in discreet money laundering than an extended celebration: sports cars, private jets, rented mansions, nightclub bills running into millions and watches costing more than most houses.

The alleged ringleader, 22-year-old Singaporean Malone Lam, is expected to plead guilty in Washington this week. Prosecutors say the group spent around $4mn in Los Angeles nightclubs during a single month, while Lam personally spent more than $569,000 in one evening. The FBI says he also used stolen crypto to buy more than 30 cars and a $2mn watch.

The extravagance is entertaining only until the numbers become serious. The FBI’s investigation shows how quickly cryptocurrency can move from a digital wallet into the physical economy – and how the same transparency that makes blockchains attractive to legitimate users can eventually become useful to law enforcement.