Bitcoin Magazine

22-Year-Old Pleads Guilty in $263 Million Bitcoin and Crypto Theft

A 22-year-old California resident has pleaded guilty to his role in a multi-state social engineering scheme that stole roughly $263 million in crypto.

Evan Tangeman of Newport Beach, California, admitted laundering $3.5 million in crypto for the criminal enterprise, the U.S. Attorney’s Office announced Monday.

Tangeman pleaded guilty to participating in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy before U.S. District Court Judge Colleen Kollar-Kotelly. 

Sentencing is scheduled for April 24, 2026. He is the ninth defendant to enter a guilty plea in this specific investigation.

The court also unsealed the Second Superseding Indictment, adding three more defendants. Nicholas Dellecave, also known as “Nic” or “Souja,” Mustafa Ibrahim, also known as “Krust,” and Danish Zulfiqar, also known as “Danny” or “Meech,” face charges of RICO conspiracy along with the other members of the Social Engineering Enterprise (SE Enterprise). 

Dellecave was arrested in Miami on Dec. 3, 2025. Ibrahim and Zulfiqar were recently arrested in Dubai.

According to prosecutors, the enterprise began in October 2023 and continued through at least May 2025. It originated from friendships formed on online gaming platforms. The group included individuals in California, Connecticut, New York, Florida, and abroad.

Details of the rampant crypto crime

The scheme involved database hackers, organizers, target identifiers, callers, and residential burglars who targeted hardware wallets containing cryptocurrency. Hackers used stolen databases to identify high-value targets. 

Callers impersonated crypto exchange staff or email providers to trick victims into revealing account credentials. 

Burglars physically broke into homes to steal hardware wallets.

Tangeman acted as a money launderer. He converted stolen cryptocurrency into cash using a bulk-cash converter. Tangeman then used the cash to obtain rental homes for members of the group, often listing false names on the leases. 

Some properties rented for $40,000 to $80,000 per month. He secured homes in Los Angeles and Miami.

The largest known theft occurred on Aug. 18, 2024. Tangeman’s co-conspirators, including Malone Lam and Danish Zulfiqar, deceived a victim in Washington, D.C., into transferring over 4,100 Bitcoin. At the time, the crypto was valued at $263 million. The same amount is now worth more than $368 million.

Tangeman also helped Lam obtain roughly $3 million in cash from stolen cryptocurrency to secure a rental property. 

After Lam’s arrest on Sept. 18, 2024, Tangeman accessed home security systems to screenshot FBI agents during searches. He also asked another member to retrieve and destroy digital devices from Lam’s Los Angeles residence.

Prosecutors said the enterprise spent stolen funds on a lavish lifestyle. Purchases included nightclub services up to $500,000 per night, luxury handbags, watches valued between $100,000 and $500,000, designer clothing, rental homes, private jets, security guards, and a fleet of at least 28 exotic cars ranging from $100,000 to $3.8 million.

Three additional defendants unsealed

With Tangeman’s guilty plea, prosecutors have unsealed charges against three additional defendants. The Second Superseding Indictment shows the investigation is ongoing. Authorities have not disclosed whether any of the stolen Bitcoin has been recovered or whether restitution will be sought.

The SE Enterprise relied on social engineering rather than sophisticated hacking techniques. The group’s operations originated from online friendships, but the stolen funds funded high-profile purchases and drew attention. 

Authorities said the defendants’ extravagant spending played a role in exposing their activities.

Tangeman remains free pending sentencing. 

Federal penalties for RICO conspiracy and money laundering carry significant prison terms. The Justice Department has indicated that additional charges may follow as the investigation continues.

A RICO conspiracy occurs when individuals agree to take part in a pattern of criminal activity, or racketeering, through an ‘enterprise.’ Under the Racketeer Influenced and Corrupt Organizations Act (RICO), prosecutors can connect separate crimes and individuals under a single charge.

The focus is on proving a shared criminal objective, not that every participant committed every act.

This post 22-Year-Old Pleads Guilty in $263 Million Bitcoin and Crypto Theft first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Paulo Vidal, a Dogecoin Foundation developer, has created a new protocol that transforms DOGE addresses into International Bank Account Numbers (IBANs). This development could make it easier to link Dogecoin with conventional financial systems, offering a new level of usability for both crypto enthusiasts and mainstream players. While the protocol is still in its early stages, Vidal has shared updates on its developments and insights into its core features. 

Dogecoin Dev Introduces Banking IBAN For DOGE

Dogecoin could be taking a step closer to mainstream financial integration as Vidal unveils an innovative protocol that allows addresses tied to the meme coin to function like bank-validated IBANs. Announced on X this week, the Dogecoin developer explained that his effort to simplify Dogecoin addresses has evolved into a D-IBAN system fully compliant with ISO 13616-1:2020 Standard. 

Vidal has explained that the D-IBAN protocol allows Dogecoin addresses to be formatted in a way that banking systems can easily validate, effectively bridging the gap between cryptocurrency and traditional finance. He explained that the system supports multiple address types, including P2PKH, P2SH, P2WPKH, and time-locked addresses, automatically detecting the type from the address prefix. Additionally, it automatically detects the address type and uses the same MOD-97-10 Checksum algorithm used by banks worldwide. 

The Dogecoin developer notes that the D-IBAN encoding is fully reversible, allowing users to convert back and forth without losing any data. The protocol also formats the IBAN into standard four-character groups for readability, making DOGE addresses more user-friendly and appearing bank-compliant. 

Beyond the core D-IBAN functionality, Vidal has also introduced playful and practical extensions of the system. The DogeMoji protocol converts addresses into memorable, visually appealing emoji sequences—ideal for social media or QR codes. 

The second DogeWords protocol encodes addresses into short, positive word sequences that are easy to read and remember, while maintaining complete reversibility and ensuring accuracy through validation. Both D-IBAN features are designed to make Dogecoin easier to share and interact with in creative ways. 

Community Reacts To D-IBAN Invention

Members of the crypto community who read about Vidal’s new D-IBAN protocol responded with a mix of enthusiasm, curiosity, and caution. Crypto analyst Astro noted that sending fiat to a crypto address via IBAN would require compliance with Anti-Money Laundering (AML) rules, KYC verification, and potentially obtaining a Virtual Asset Service Provider (VASP) license. 

Astro warned that integration with traditional banks could undermine the decentralized narrative of blockchain technology, contending that banks and crypto have inherently conflicting interests. A community member also highlighted that creating a mathematically valid IBAN from a Dogecoin address does not guarantee that banks will process actual transactions. He stated that only IBANs issued by authorized institutions are recognized for fund transfers. 

Vidal addressed these concerns by emphasizing that the D-IBAN protocol is intended to provide optional banking integration rather than enforce it. He argued that banks could handle Dogecoin in a familiar format while users retain full control of their wallets, preserving self-custody and upholding the core principles of decentralization.

Europol announced the seizure of Cryptomixer’s official website, as well as 25 million euros and 12 terabytes of data from the mixer's service.

The pathway to acquiring Bitcoin and other cryptocurrencies has often been perceived as complex, involving multiple steps. However, a monumental shift is now underway as Apple Pay has integrated into leading crypto platforms, and getting a major upgrade is becoming as seamless and intuitive as any other digital transaction. This integration removes one of the biggest barriers to entry by replacing traditional transactions.

Why Apple’s Entry Signals A Turning Point For Global Crypto Payments

Apple Pay is now directly integrated with Bitcoin and other cryptocurrencies. A crypto site, CryptosRus, has revealed on X that Apple users can now purchase BTC and other cryptocurrencies directly within Trust Wallet using Apple Pay. This integration will make buying crypto as easy as buying Apps from the App Store, dramatically lowering friction for newcomers with no more clunky bank transfers, complex onboarding forms, and steep learning curves.

With a few simple taps via Apple Pay, the crypto will be in your Trust Wallet. In short, Apple is helping to replace fear and friction with just tap-and-own simplicity. This Apple Pay and crypto is the kind that will seamlessly onramp.

Bitcoin and crypto adoption are sharply gaining traction globally. In a surprising turn for one of the world’s most tightly controlled economies, Turkmenistan has officially legalized Bitcoin and broader cryptocurrency trading. CryptosRus stated that President Serdar Berdimuhamedov has signed a new Sweeping bill that sets the stage for a fully regulated crypto market to begin in 2026.

The new law establishes a dedicated state Commission that will oversee licensing, Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols, cold-storage rules, mining registration, and even the power to halt or require refunds for token issuances. According to CryptoRus, this is a sign that even the most controlled states are being pushed into crypto adoption as the global regulation accelerates.

Bitcoin Decentralized Rails More Resilient Than TradFi Hardware?

An author and ideologist, Shanaka Anslem Perera, pointed out that the day $13.4 billion in Bitcoin options expired, the traditional financial system nearly collapsed. At the crucial hour of 03:00 GMT, the Chicago Mercantile Exchange (CME) froze, a cooling failure originating from a single data center. The failure led to 90% of global derivatives trading being halted. 

Meanwhile, a larger sum of $15 billion in crypto options was settled on time, with each block confirmed and every trade seamlessly executed. The machines that price the world stopped working because they were overheated, and the decentralized alternative rails ran exactly as designed. “This isn’t a coincidence, it’s a stress test, and only one system passed the test,” Shanaka noted.

Samourai Wallet founders Keonne Rodriguez and William Hill were sentenced to 4 and 5 years for laundering $237M via their crypto mixer.

Irish authorities seized $7.1 million in cryptocurrency in a raid targeting money laundering and darknet sales. Three individuals were arrested, with one remaining in custody. “The arrests of the three individuals and the assets seized are the result of a highly complex investigation into criminal darknet marketplace activities by specialist investigators attached to the Garda […]

A 29-year-old man suspected of laundering the proceeds of drug trafficking was arrested in Neufs (France).

According to the information provided, the defendant created a cryptocurrency mixer at the request of a drug dealer “Drugsource” who made a profit by selling drugs through the “dark web”. It is known that Drugsource has fulfilled more than 3000 orders worth more than USD 1.5 million during its operation.

The investigation into the drug trafficker’s activities began in early September 2020. Law enforcement agencies made a control purchase and were able to obtain the address of the trafficker’s wallet. After analyzing the blockchain, the police came across a 29-year-old man whose account had been used for 14 transactions by the drug dealer. The police were able to find and arrest the accused in September 2022.

The hearing in the case of the 29-year-old defendant was scheduled for January 2023. The defendant claimed responsibility for creating the bitcoin tumbler for Drugsource, but he denied any involvement in drug sales. The court nevertheless acquitted him of drug trafficking charges, but he was facing imprisonment for money laundering on a large scale.

USD 500,000 was confiscated from the offender’s cryptocurrency and bank accounts, and his apartment in Dubai was also seized. The defendant is awaiting sentencing in February 2023 on charges of money laundering obtained from the sale of drugs.

Undercover Austrian "controlled data buy" leads to Amsterdam arrest and ongoing investigation. Suspect is said to steal and sell all sorts of data, including medical records.

Cryptocurrency exchange Bitzlato, better known to the Russian-speaking segment of the market, has been taken down as part of an “international cryptocurrency enforcement action,” the U.S. Justice Department announced. The Russian owner of the platform has been arrested for his role in the alleged transmission of illicit money. Bitzlato claimed it was hacked.

US, France Hit Cryptocurrency Exchange Bitzlato, Russian Co-founder Detained in Miami

U.S. authorities have apprehended Anatoly Legkodymov, a resident of China, on charges that his Hong Kong-registered crypto trading platform, Bitzlato, processed illicit funds worth hundreds of millions of dollars. The Russian, a co-founder and majority owner of the exchange, was arrested by the FBI in Miami on Tuesday, a high-ranking official from the United States Department of Justice (DOJ) revealed.

Speaking during a press conference, Deputy Attorney General Lisa Monaco said that Justice Department agents and prosecutors, working with the U.S. Treasury Department and French law enforcement, have “disrupted Bitzlato, a China-based cryptocurrency exchange, notorious for laundering criminal proceeds from the darknet” and ransomware attacks. She also stated:

Today, the Department of Justice has dealt a significant blow to the crypto crime ecosystem.

Legkodymov is accused of operating the exchange as a “high-tech financial hub that, in his own words, catered to ‘known crooks’,” Monaco explained. She went on to allege that Bitzlato was a “crucial financial resource” for Hydra, the largest darknet market, with Russian roots, which was shut down in April, last year, by the German police with the support of U.S. agencies.

According to the DOJ, Hydra buyers funded illicit purchases from crypto accounts hosted at Bitzlato while sellers of drugs, stolen financial information and hacking tools sent criminal proceeds to accounts at the exchange, collectively amounting to $700 million in direct and indirect transfers between 2018 and 2022.

The deputy attorney general also said that the participants in the operation have engaged in a “coordinated campaign of disruption.” This included law enforcement actions in a number of European countries and the seizure of Bitzlato’s servers. By midday Wednesday, Bitzlato’s website was replaced by a notice saying that the service had been seized by French authorities, Reuters reported.

Crypto Exchange Bitzlato Claims It Was Hacked, Halts Withdrawals

Also on Wednesday, the operators of Bitzlato announced on Telegram, that the exchange had suffered a hacking attack. They told users that withdrawals had been suspended indefinitely and asked them to refrain from sending coins to the platform until the issue is resolved.

“Our service was hacked, part of the funds was withdrawn from the service,” the exchange said, noting that the attackers were able to steal a small portion of the funds without specifying the amount. It also sought to assure customers in a second message that their assets were not lost, stating:

For all victims, we guarantee a refund.

“As a security measure, we have disabled the service, we ask you not to replenish the wallets of our service until the work is restored,” Bitzlato reiterated, adding that its team was working on the problem. At the time of writing, the platform is still offline.

The hack presumably took place after on Tuesday the exchange announced maintenance scheduled for Thursday, Jan. 19, “aimed at improving the operation of the service and its security.” The notice informed users it will halt transactions between 5 and 9 a.m. Moscow time.

“We strongly recommend that you organize your work activities taking into account the amendments in order to avoid unpleasant situations,” the platform advised customers, informing them that it plans to disable deposits, withdrawals and trading.

Bitzlato launched in 2016 under the name Changebot and later became a cryptocurrency exchange offering peer-to-peer (P2P) trading services. It lists pairs of the Russian ruble with BTC, ETH, USDT, and other digital coins which can be bought and sold with a variety of payment methods.

Online crypto exchangers like Bitzlato are popular in Russia and the former Soviet space but as crypto assets are yet to be fully regulated in the region, they are often targeted by authorities across the Commonwealth of Independent States. A report recently revealed that the Belarusian judiciary has imposed a hefty fine on the operator of one such platform.

Do you expect other similar operations against crypto trading platforms in the near future? Share your thoughts on the subject in the comments section below.