USD 240M Bitcoin Scam: How Criminals Stole 4,100 BTC Without Hacking

A group of criminals stole more than USD 240 million in Bitcoin without using malware or breaking into a crypto platform. The fraud came to light after a

The most interesting part is that this total scam was executed by Malone Lam, a 22-year-old school dropout from Singapore.  He was found guilty of the crypto scam, making him 11 of the 18 people involved in the case. 

The stolen Bitcoin was moved through different crypto exchanges. The group tried its best to conceal its digital trail, but police later found a key clue when another suspect, Jeandiel Serrano, reportedly failed to hide his IP address while opening an exchange account. He was reportedly creating an account on a cryptocurrency exchange to hold nearly USD 30 million in stolen cryptocurrency.

Prosecutors confirmed that Serrano was arrested on September 18, 2024, at Los Angeles International Airport, wearing a lavish watch estimated to be worth about  USD 500,000. Although he initially denied any involvement, he later admitted to the scam and his role. 

The group did not need complex software to steal the Bitcoin. They used a simple trick. They created a fake security problem and convinced the victim to hand over important information.

Prosecutors further reported that the group had used similar tricks in other crypto thefts. Some members reportedly met through online gaming forums. The stolen money was then spent on luxury cars, homes and expensive nights out. Lam allegedly bought more than 30 luxury cars and spent heavily at nightclubs.