California Man Pleads Guilty to Laundering Millions in Stolen Bitcoin from Gaming Scheme

• Gaming friendships evolve into a criminal network using social engineering to target wealthy crypto holders.

• The group laundered stolen funds into luxury purchases like mansions, exotic cars, and private jets.

• Over 4,100 Bitcoin stolen, now worth more than $370 million, with nine guilty pleas and ongoing arrests including international suspects.

Gaming-based Bitcoin theft scheme: Uncover how online friends turned a social engineering scam into a $263M crypto heist. Learn about guilty pleas, lavish spending, and FBI investigations. Stay informed on crypto security risks today.

What is the gaming-based Bitcoin theft scheme?

The gaming-based Bitcoin theft scheme refers to a sophisticated social engineering operation where a group of individuals, initially connected through online gaming platforms, targeted cryptocurrency investors across the United States. By posing as cybersecurity experts, they tricked victims into revealing wallet access, stealing over 4,100 Bitcoin valued at approximately $263 million at the time of the thefts. This RICO conspiracy, which began around October 2023, has led to multiple convictions, highlighting vulnerabilities in digital asset security.

How did the gaming group execute the Bitcoin thefts?

The scheme relied on stolen databases from hacked websites to identify high-value cryptocurrency holders. Group members then initiated phone calls, impersonating tech support to create urgency about supposed account breaches. Victims, trusting the callers, transferred control of their digital wallets, allowing thieves to siphon funds directly. According to details from the U.S. Justice Department, this method netted over 4,100 Bitcoin in a single major incident in August 2024, demonstrating the effectiveness of psychological manipulation in crypto crimes. The operation spanned multiple states and international locations, with members coordinating via encrypted channels. Federal investigators, including the FBI and IRS-Criminal Investigation, traced transactions showing the group’s use of mixers and exchanges to obscure origins. This case underscores the need for investor education on phishing tactics, as social engineering exploits human trust rather than technical flaws.

Frequently Asked Questions

What role did Evan Tangeman play in the Bitcoin laundering scheme?

Evan Tangeman, a 22-year-old from Newport Beach, California, admitted to converting over $3.5 million in stolen cryptocurrency into cash for the group. He facilitated luxury property rentals using fake identities and attempted to obstruct FBI searches by monitoring and destroying evidence. His guilty plea in federal court ties him to the RICO conspiracy, with sentencing set for April 24, 2026.

Why did the gaming group target cryptocurrency investors specifically?

The group focused on cryptocurrency investors because digital assets like Bitcoin offer high liquidity and relative anonymity for quick laundering. By using social engineering, they bypassed traditional security measures, accessing wallets without needing advanced hacking skills. This approach allowed them to steal substantial sums, such as 4,100 Bitcoin from one victim, which could be rapidly converted and spent on extravagant lifestyles without immediate traceability.

Key Takeaways

• Social engineering remains a top threat in crypto: Online interactions, even from gaming platforms, can lead to real-world crimes; always verify unsolicited security alerts independently.
• Lavish spending exposes criminal networks: Purchases of luxury items like $3.8 million cars and elite nightclub outings left trails that aided FBI investigations and led to arrests.
• Ongoing enforcement deters crypto thefts: With nine convictions and new charges against international members, victims should report incidents promptly to support broader crackdowns.

Conclusion

The gaming-based Bitcoin theft scheme and subsequent laundering operations illustrate the dangers of blending online social connections with financial crimes in the cryptocurrency space. As federal agencies like the U.S. Justice Department and FBI continue their probe, this case serves as a stark warning for investors to enhance wallet security and remain vigilant against manipulation tactics. Looking ahead, stronger regulatory measures and awareness campaigns will be essential to protect the growing crypto ecosystem from such elaborate social engineering threats.

The perpetrator admitted to helping a gaming-based group launder millions from a scheme that stole over 4,100 Bitcoin.

Key Highlights

• A gaming-based group used social engineering to steal more than 4,100 Bitcoin from crypto investors across the U.S.
• The stolen funds were spent on luxury mansions, exotic cars, private jets, and high-end nightclub outings.
• Perpetrator Tangeman’s guilty plea marks the ninth conviction in the $263M case, with additional suspects recently arrested.

A massive social engineering scheme that originated from online gaming friendships has resulted in one of the largest cryptocurrency theft cases prosecuted in recent U.S. history. This operation, involving coordinated deception and money laundering, preyed on the trust of digital asset owners, leading to significant losses and a trail of extravagant expenditures.

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On Tuesday, 22-year-old Evan Tangeman of Newport Beach, California, entered a guilty plea in federal court for his role in laundering millions in pilfered digital currency. This admission makes him the ninth individual to confess involvement in the sprawling conspiracy.

The U.S. Justice Department reported that Tangeman stood before U.S. District Court Judge Colleen Kollar-Kotelly, where he owned up to his part in a Racketeer Influenced and Corrupt Organizations (RICO) plot.

He confessed to aiding the conversion of more than $3.5 million worth of illicit virtual currency into fiat money. Sentencing for Tangeman is slated for April 24, 2026.

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From Gaming Bonds to Criminal Network

Per the Second Superseding Indictment, this illicit enterprise kicked off no earlier than October 2023 and persisted until May 2025. What began as casual connections among young gamers online transformed into a structured syndicate with operations both domestically and abroad. Participants hailed from California, Connecticut, New York, Florida, and various international spots.

Authorities detailed how the crew acquired pilfered data from breached online platforms and servers to pinpoint affluent Bitcoin owners. Attackers then dialed targets, masquerading as IT security specialists warning of imminent hacks. Lulled into compliance, victims handed over credentials to their crypto storage, enabling seamless fund drainage.

Throughout their activities, the network absconded with more than 4,100 Bitcoin—equivalent to roughly $263 million then, and exceeding $370 million in current market terms.

Extravagant Lifestyles Funded by Theft

The criminals showed little restraint in flaunting their gains. Court documents from prosecutors reveal that the pilfered crypto bankrolled opulent evenings at top-tier clubs, with tabs reaching $500,000, plus giveaways of designer bags costing tens of thousands.

Acquisitions included premium timepieces ranging from $100,000 to $500,000, bespoke attire, chartered flights, and even personal protection details. They secured high-rent estates in upscale areas of Los Angeles, the Hamptons, and Miami. Law enforcement later uncovered at least 28 luxury vehicles connected to the outfit, including one appraised at $3.8 million.

Tangeman joined when associates relocated to Los Angeles toward the end of 2023, seeking assistance in cashing out digital loot and masking rental agreements. He employed services to swap crypto for cash and fabricated personas for leases to shield identities. Notably, one such exchange post a key August 2024 heist yielded almost $3 million for a Miami property deal.

A Landmark Heist and Efforts to Evade Capture

On August 18, 2024, syndicate members reached out to a victim in Washington, D.C., feigning assistance with a fabricated cyber issue to gain wallet entry. This ploy yielded over 4,100 Bitcoin in a single stroke.

Following the September 18, 2024, arrest of accomplice Malone Lam in Miami, Tangeman sought to shield the group from deeper probes. He tapped into Lam’s surveillance system to glimpse FBI raids and urged a fellow operative to eliminate electronics from a Los Angeles property associated with them.

Expanding Probes and Recent Detentions

Tangeman’s confession prompted the revelation of indictments against three more figures: Nicholas Dellecave, aka “Nic” and “Souja,” plus Mustafa Ibrahim and Danish Zulfiqar, monikered “Krust,” “Danny,” and “Meech.” Dellecave was detained in Miami on December 3, 2025. Ibrahim and Zulfiqar, taken into custody in Dubai, allegedly directed key aspects of the endeavor.

The matter is under joint scrutiny by the U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and IRS-Criminal Investigation in Washington, D.C., bolstered by numerous regional offices and prosecutors nationwide.

As Tangeman prepares for his court date, the inquiry presses on, exemplifying how virtual acquaintances can burgeon into vast illicit operations with profound financial repercussions.

Also Read: US Seizes Domain Linked to Burma Crypto Scam Compound

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The U.S. Justice Department’s pursuit of this case demonstrates a commitment to dismantling crypto-related criminal networks, drawing on expertise from federal agencies to trace blockchain transactions and international leads. As the cryptocurrency market matures, such incidents emphasize the importance of robust verification protocols for investors. The involvement of gaming platforms as recruitment grounds highlights evolving cybercrime tactics, where personal relationships mask predatory intent. With the value of stolen assets appreciating, recovery efforts by authorities could yield significant restitutions for affected parties. This prosecution not only seeks justice for victims but also sets precedents for handling RICO charges in digital finance crimes, potentially influencing future legislation on crypto security standards.