The U.S. Department of Justice (DOJ) has charged 12 individuals in connection with a sophisticated crypto theft operation that siphoned more than $263 million from digital asset holders, including an earlier incident where scammers stole over $243 million from a Genesis creditor. These charges stem from a wide-ranging investigation into racketeering, wire fraud, money laundering, and obstruction of justice involving U.S. nationals and foreign suspects. Several of the accused were arrested in California, while two remain abroad.
The fraudsters employed social engineering tactics and hacking to obtain crypto assets, which they then laundered through mixers, shell companies, and peel chains. The stolen proceeds were spent on luxury cars, private jets, exclusive nightclubs, and high-end goods like Hermes bags. Physical burglaries were also part of their modus operandi to acquire crypto wallets.
Amid rising crypto investment fraud losses, which the FBI reported reached $5.8 billion last year, the DOJ continues cracking down on illicit activities in the crypto space. In a related development, Coinbase disclosed that scammers bribed overseas employees to access sensitive user data, potentially affecting payouts from $180 million to $400 million.