$263M crypto crime ring busted: US DOJ charges 12 suspects in RICO indictment
- DOJ indicts 12 individuals, including Americans and foreign nationals, for multi-state crypto racketeering conspiracy, stealing over $263 million.
- Suspects used database hacks, SIM swaps, home invasions, and mixers to launder stolen Bitcoin and other crypto.
- DOJ alleges proceeds funded luxury lifestyles, including exotic cars, private jets, and high-end property in US cities.
U.S. DOJ indicts 12 suspects for $263M crypto heist, exposing cybercrime trail targeting large-holder wallets, exchanges, and blockchain security architecture.
Crime syndicate loots $236 million with social engineering, home invasions and crypto fraud
The U.S. Department of Justice has charged 12 individuals in a sweeping criminal indictment alleging a multi-state racketeering conspiracy involving over $263 million in stolen cryptocurrency.
The DOJ’s official press release on Thursday details an elaborate pattern of organized crime in crypto, involving digital fraud and physical theft.
According to prosecutors, the group systematically hacked cryptocurrency databases to gather private user data. Once inside, they allegedly used social engineering tactics such as impersonating banks and exchanges to bypass security and access wallets.
In some cases, they reportedly went as far as burglarizing victims' homes to retrieve recovery phrases and hardware wallets.
The charges include wire fraud, identity theft, money laundering, and conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO), a legal tool traditionally used against organized crime syndicates.
US DOJ details sophisticated laundering network involving crypto mixers, shell companies, and offshore exchanges
After stealing the funds, the group reportedly used crypto mixers, decentralized protocols, and offshore exchanges to launder the proceeds, making tracing efforts more difficult.
The operation spanned several U.S. states, with the DOJ highlighting it as a case that “reflects the convergence of cybercrime and traditional organized theft.”
Court documents also reveal that victims were selected from leaked exchange databases and attacked using SIM-swapping, phishing, and spoofed support channels. This allowed the perpetrators to reset authentication credentials and drain wallets swiftly.
The U.S. Department of Justice has indicted 12 defendants for RICO conspiracy involving over $263 million in cryptocurrency theft, money laundering, and home burglaries. The defendants allegedly hacked cryptocurrency databases to identify targets, impersonated bank or exchange…
— Wu Blockchain (@WuBlockchain) May 15, 2025
The DOJ says this case sets a precedent for tackling blockchain-era criminal enterprises, and stressed its collaboration with international partners and forensic firms in tracing and recovering stolen funds.
What’s next?
With charges filed, the case will now proceed to trial, where further details of the international laundering networks and tech vulnerabilities may emerge.
It also raises urgent questions about crypto KYC standards, data leaks, and wallet-level security, especially as institutional adoption grows.
Author
Ibrahim Ajibade
FXStreet
Ibrahim Ajibade is an accomplished Crypto markets Reporter who began his career in commercial banking. He holds a BSc, Economics, from University of Ibadan.
