22-Year-Old Pleads Guilty to Money Laundering for $263 Million Crypto Syndicate

Source: DefiPlanet Original Title: 22-Year-Old Pleads Guilty to Money Laundering for $263 Million Crypto Syndicate Original Link:

Quick Breakdown

• Evan Tangeman, 22, pleaded guilty to participating in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy.
• The charge is for laundering over $3.5 million for a syndicate that stole approximately 4,100 $BTC, valued at $263 million at the time.
• Tangeman is the ninth defendant to admit guilt in the investigation of the social engineering scheme that ran from October 2023 to May 2025.

A 22-year-old California resident, Evan Tangeman, pleaded guilty today to participating in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy for his role in a $263 million social engineering crypto scheme. Tangeman admitted guilt before U.S. District Court Judge Colleen Kollar-Kotelly for laundering over $3.5 million for the syndicate. His guilty plea makes him the ninth defendant to be convicted in the ongoing investigation into the enterprise.

The U.S. Justice Department announced the plea, noting that the social engineering enterprise operated from October 2023 to May 2025. The criminal group, which originated from a network of friends on online gaming platforms, spanned across several US states, including California, Connecticut, New York, and Florida, as well as locations abroad. The scheme successfully stole about 4,100 $BTC, which was valued at $263 million at the time, but is now worth $371 million.

Syndicate used stolen data to target victims

The criminal group employed a multi-faceted approach, comprising hackers, organizers, target identifiers, callers, and burglars who specifically targeted victims’ hardware wallets. The indictment detailed that the syndicate first used hackers to breach websites and servers to acquire databases containing crypto-related information. Identifiers then utilized this stolen data to pinpoint the most valuable targets.

The “callers” were responsible for cold-calling victims. Their deceptive strategy involved convincing victims that their accounts were under cyberattack and that the caller was a helpful party seeking to secure their assets. The stolen cryptocurrency was then quickly converted. Tangeman assisted explicitly by using a bulk-cash converter to exchange the stolen digital assets into cash. The syndicate members subsequently used this cash to acquire luxury items, including expensive watches, designer handbags, cars, private jet rentals, nightclub services, and rental homes, as well as to fund a private security team. Tangeman also used fake names on property leases to conceal the actual owners. His sentencing is scheduled for April 24, 2026.

Meanwhile, a certain major compliance platform is urging the US Treasury to modernize its efforts to combat financial crime in digital assets by adopting AI, APIs, and blockchain analytics to enhance Anti-Money Laundering (AML) efforts. To spur innovation, the company proposes a Bank Secrecy Act safe harbour for firms using AI compliance tools, focusing on performance outcomes over rigid rules.