Federal authorities have arrested two individuals in connection with a massive $230 million cryptocurrency scam, while crypto sleuth ZachXBT provided key insights into the case. The suspects, Malone Lam and Jeandiel Serrano, allegedly conspired to defraud a Washington, D.C.-based victim of over 4,100 Bitcoin, later laundering the funds through complex transactions across various crypto exchanges.
Lam, a 20-year-old Singaporean national, and Serrano, 21, were apprehended in Miami and Los Angeles, respectively, following months of investigation. Both have been charged with conspiracy to commit fraud and money laundering, according to an indictment unsealed by the U.S. Attorney's Office for the District of Columbia on September 19, 2024.
ZachXBT's role
Cryptocurrency investigator ZachXBT, well-known within the crypto community for uncovering scams, played a significant role in exposing the tactics used by the suspects. His Twitter thread, posted around the same time the arrests were made, highlighted how small errors made by the perpetrators ultimately led to their downfall. In response to his work, ZachXBT acknowledged the relentless pace of his investigation, noting his lack of sleep during the process.
In the thread, users praised ZachXBT for uncovering vital evidence, with one user referencing a slip-up on the suspects' Windows start page, a critical error that helped law enforcement trace their identities. Another user inquired about how ZachXBT obtained incriminating videos of the conspirators discussing how they would split the stolen cryptocurrency, to which ZachXBT cryptically responded, “Some things are better left unsaid.”
ZachXBT
These revelations, though not directly cited in the indictment, suggest that ZachXBT's investigation provided valuable clues that aided federal agents.
Complex laundering operation
The scam, which began in August 2024, involved Lam and Serrano exploiting a Washington, D.C., victim through fraudulent communications that allowed them to access the individual's Bitcoin wallet. They then employed advanced laundering techniques, such as “peel chains,” pass-through wallets, and cryptocurrency mixers, to hide their tracks. Virtual Private Networks (VPNs) were also used to obscure their real identities, making detection more difficult.
Despite these sophisticated efforts, the suspects made critical mistakes, as noted in ZachXBT's Twitter thread, ultimately leading to their identification and arrests. The stolen Bitcoin, worth over $230 million at the time, was spent on luxury items, including high-end cars, watches, and rental properties in Miami and Los Angeles.
U.S. Attorney Matthew M. Graves and FBI Acting Special Agent David Geist confirmed that the case is ongoing, with investigative support from the IRS-Criminal Investigation Division. The arrests of Lam and Serrano were carried out with the assistance of FBI field offices in Los Angeles and Miami.
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Nice Crypto Heist news above. Spending all that money had to be in question as where it came from. Looking at what the past had yielded them in a life.