Teen Crypto Gang Blew $263M on Jets, Clubs, & Luxury Cars

Crypto News Regulation

Teen Crypto Gang Blew $263 Million on Private Jets, Clubs, and Luxury Cars

Written by Aaron S.,

Editor-In-Chief

Last Updated: May 16, 2025

Key Takeaways

A group of mostly teens is accused of stealing $263 million in crypto and spending it on cars, clubs, and private jets;
The group met through gaming platforms and used fake identities, mixers, and VPNs to hide stolen funds;
Lead suspect Malone Lam allegedly kept giving orders from jail, while the FBI said the case is still under investigation.

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Teen Crypto Gang Blew $263 Million on Private Jets, Clubs, and Luxury Cars

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A group of young people is facing federal charges for allegedly stealing over $263 million in cryptocurrency and spending the money on expensive cars, parties, and high-end items.

US authorities announced charges against 12 new individuals on May 15, naming Malone Lam in a four-count indictment.

Most of the accused are between 18 and 21 years old. Some are American citizens, while others are foreign nationals. Two of them are believed to be in Dubai, and a few are known only by their online usernames.

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The charges include conspiracy under racketeering laws, wire fraud, and money laundering. One member, John Tucker Desmond, is accused of destroying evidence to interfere with the investigation.

According to court documents, the group formed around October 2023 after meeting on gaming platforms. Each person had a different role—some hacked databases, others pretended to be support staff to trick victims, and a few helped move the stolen crypto into cash.

The group reportedly used a range of tools to hide their activity, including VPNs, coin mixers, and fake companies. They used the money for personal use, booking private jet flights, buying at least 28 luxury cars, renting expensive homes, and spending large amounts at clubs. Some of the cash was hidden inside stuffed toys during transport.

Authorities also reported that Lam continued to give instructions to others while in custody, including telling someone to deliver luxury items to his partner. The investigation is ongoing, with help from FBI teams in Los Angeles and Miami.

On May 14, authorities in Europe arrested 17 people for operating a crypto-based network that laundered over $23 million. How did the case unfold? Read the full story.