Cryptocurrency Fraud Ring Exposed: Ninth Defendant pleads Guilty in $368 million Scheme
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A sophisticated, multi-state conspiracy leveraging social engineering to steal hundreds of millions of dollars in cryptocurrency has ensnared another key player. Evan Tangeman, 22, of Newport Beach, California, pleaded guilty today to participating in the scheme, bringing the total number of guilty pleas in the examination to nine, as announced by U.S. Attorney Jeanine Ferris Pirro.
Tangeman admitted to involvement in a RICO conspiracy before U.S. District Court Judge Colleen Kollar-Kotelly, specifically acknowledging his role in laundering funds obtained through the fraudulent activities of the “Social Engineering Enterprise” (SE Enterprise). The other defendants identified in the indictment include: Malone Lam, also known as “Danny” and “Meech.” Dellecave was apprehended in Miami on December 3, 2025, while Zulfiqar and Ibrahim were recently arrested in Dubai on related charges.
From Online Gaming to Multi-Million dollar Fraud
The illicit operation, dubbed the “Social Engineering Enterprise” (SE Enterprise) by investigators, reportedly originated in late 2023 from friendships forged on online gaming platforms. The group, comprised of individuals based across California, Connecticut, New York, Florida, and international locations, rapidly evolved into a complex network of criminals.
Tangeman’s role within the enterprise was primarily as a money launderer, supporting a team that included database hackers, organizers, individuals identifying targets, those conducting the initial contact with victims, and even burglars targeting hardware cryptocurrency wallets.According to court documents, the group systematically exploited stolen databases to identify and defraud victims of their digital assets.
The scale of the spending fueled by the stolen cryptocurrency is staggering. Members of the SE Enterprise allegedly used their ill-gotten gains to fund a lavish lifestyle, including nightclub services costing up to $500,000 per evening, luxury handbags given away at parties valued in the tens of thousands of dollars, high-end watches ranging from $100,000 to $500,000, designer clothing, and opulent rental properties in Los Angeles, the Hamptons, and Miami. The group also indulged in private jet travel, employed private security, and amassed a fleet of at least 28 exotic cars, some valued as high as $3.8 million.
$368 million Bitcoin Theft and Tangeman’s Involvement
The Second Superseding indictment details a notably brazen theft that occurred on August 18, 2024. Tangeman’s co-conspirator, Malone Lam, along with Zulfiqar and others, allegedly defrauded a victim in the District of Columbia of over 4,100 Bitcoin, initially valued at $263 million. As of this week, that stolen cryptocurrency is now worth more than $368 million, demonstrating the volatile and increasing value of the digital asset.
Tangeman’s connection to the enterprise began in late 2023 when Lam and others relocated to Los Angeles and required assistance securing rental homes, utilizing stolen cryptocurrency for payment. Tangeman facilitated the exchange of stolen cryptocurrency for fiat currency through a bulk-cash converter, enabling the acquisition of properties renting for between $40,000 and $80,000 per month. He also allegedly used false names on leases to conceal the true ownership of the properties, extending his services to securing rentals in Miami as well. In August 2024, following the DC victim’s theft, tangeman reportedly helped Lam convert approximately $3 million in stolen cryptocurrency into cash for another rental property.
Following Lam’s arrest in miami on September 18, 2024, Tangeman allegedly compromised home security systems, taking screenshots of FBI agents conducting searches. He also reportedly instructed another member of the enterprise to retrieve and destroy digital devices from Lam’s Los Angeles residence.
The investigation is being led by the U.S. attorney’s Office for the District of Columbia, in collaboration with the FBI’s Washington Field Office and the IRS-Criminal Investigation Washington D.C. Field Office. Important support has also been provided by FBI field offices in Los Angeles and Miami,as well as U.S. Attorney’s Offices in the Central District of california, Southern District of Florida, and the District of New Jersey. Assistant United States Attorney Kevin Rosenberg, Co-Chief of the Fraud, Public Corruption, and Civil Rights Section, is prosecuting the case.
