How Malone Lam’s Greed Exposed a $230M Crypto Scam: Full Story

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Malone Lam, 20, led a $230 million Bitcoin theft in 2024 using social engineering tactics to manipulate victims. The stolen crypto was laundered and spent on luxury items.

How Malone Lam’s Greed Exposed a $230M Crypto Scam: Full Story

One of the most high-profile criminal cases in the crypto community in 2024 was the theft of more than $230 million in Bitcoin. Malone Lam, 20, from Singapore, is alleged to have been at the centre of an alleged elaborate scam, as reported by the police, along with an accomplice.

This article will delve deeper into the details of the scam, showing how Lam and his crew used deception, sophisticated tactics, and cryptocurrency to pull off one of the biggest crypto thefts in history.

As we unpack the events, we look at Lam’s background, the roles of other key individuals involved, and the victims of this audacious crime. We’ll also look into the investigation, the aftermath of the theft, and what could happen to the stolen funds.

Key Takeaways

Malone Lam orchestrated a $230 million crypto theft, using social engineering to manipulate victims into compromising security.
Lam laundered stolen Bitcoin via exchanges, P2P platforms, and mixing services, spending on luxury cars and jets.
Authorities recovered some funds and luxury items, but much of the $230 million remains unaccounted for.

Overview of the $230 Million Cryptocurrency Scam

In late 2024, news broke about a staggering cryptocurrency scam orchestrated by a group of individuals led by Malone Lam. The scam involved the theft of 4,100 Bitcoins, valued at approximately $230 million at the time. The stolen Bitcoin was obtained through a highly sophisticated series of social engineering tactics, including impersonation and manipulation of two-factor authentication (2FA) settings, among other methods.

What makes this case even more shocking is how the stolen funds were laundered and spent through lavish purchases of luxury cars, jewellery, and even private jets. Lam’s extravagant lifestyle quickly drew the attention of law enforcement agencies, eventually leading to his arrest. But how did it all begin, and who were the other key players involved in the scam?

Who is Malone Lam?

Background and early life

Malone Lam, a young man from Singapore, rose to notoriety due to his involvement in one of the largest cryptocurrency thefts in recent history. Born in the early 2000s, Lam’s upbringing was unremarkable. His early years were characterized by a focus on academics and a quiet life in Singapore.

However, Lam’s involvement in the world of cryptocurrency began in his late teens, when he quickly became attracted to the potential of digital currencies.

Lam was just 20 years old at the time of the scam, making him one of the youngest individuals to ever be involved in a theft of this magnitude. Despite his age, his technical knowledge and understanding of crypto wallets, private keys, and blockchain technology were far beyond his peers, enabling him to execute the crime precisely and skillfully.

Personal Life and Relationships

Lam’s personal life remains largely private, but what is known is that he led a double life, one of a quiet student and the other of a high-rolling criminal mastermind. He had relationships with a few individuals, some of whom were aware of his illicit activities.

It is believed that Lam’s interactions with his co-conspirators, who were scattered across different countries, were primarily conducted through online communication, using encrypted messages and pseudonyms to remain under the radar of law enforcement.

The question of how Lam maintained his secretive life while simultaneously engaging in high-level criminal activities remains one of the intriguing aspects of the case. However, his personal connections to the crypto world were crucial in orchestrating the scam.

Who Are the Other Scammers in the Malone Lam Crypto Case?

Lam did not act alone. He was part of a criminal network that included several other key players. These individuals were critical to the operation, assisting in various stages of the scam, from executing the theft to laundering the stolen cryptocurrency.

Jeandiel Serrano (“VersaceGod” / “@SkidStar”)

Serrano, a notorious figure in the dark web, went by the alias “VersaceGod” and was known for his technical prowess. He played a central role in the scam by helping Lam bypass various security measures, including setting up the fake Google and Gemini support channels.

Veer Chetal (“Wiz”)

Chetal, who went by the pseudonym “Wiz,” was known for his skills in hacking and digital manipulation. He was responsible for manipulating the 2FA settings, ensuring that the victim’s access to the wallet was compromised.

Danish Khan and Chen

Khan and Chen were other accomplices who helped in the laundering process. They were responsible for converting the stolen Bitcoin into other assets, using complex strategies like “peel chains” to obfuscate the transaction trail.

Who is The Victim of $230 Million Theft?

The victim of this unprecedented scam is a cryptocurrency investor who had accumulated a significant amount of Bitcoin over the years. The individual, whose identity has not been publicly revealed, was a long-time crypto enthusiast and investor with holdings worth hundreds of millions of dollars.

Quick Take
The victim’s Bitcoin was stored in a highly secure wallet, making it a prime target for criminals like Lam and his associates.

What is particularly tragic for the victims is that they were deceived by the scammers into believing that their crypto wallet had been compromised by external sources, creating a sense of urgency that led them to grant remote access to the hackers. This allowed the scammers to bypass the wallet’s security systems and make off with the entire stash of 4,100 Bitcoins.

How a Singaporean Man Stole US$230 Million in Bitcoin

Malone Lam and his accomplices executed an elaborate and sophisticated scam to steal over $230 million worth of Bitcoin. The process was a carefully planned scheme designed to manipulate their victims into handing over critical security details.

Summary:

Impersonation: Scammers pretended to be Google and Gemini support to create urgency.
Spoofed Numbers: Fake phone numbers were used to appear legitimate.
2FA Reset: Victims were tricked into resetting their 2FA security settings.
Remote Access: AnyDesk was used to control victims’ devices remotely.
Stolen Bitcoin: Private keys were stolen, and 4,100 Bitcoins were transferred.
Mixing Services: Bitcoin was mixed to hide its origin.
Exchanges: It was converted into other cryptos through decentralized exchanges.
P2P Transfers: Peer-to-peer platforms were used to obscure transactions.
Crypto ATMs: Funds were withdrawn via Bitcoin ATMs.
Luxury Purchases: The stolen money was spent on cars, jewellery, and real estate.

Here’s how they did it step-by-step:

Impersonation of Google and Gemini Support to Create a Sense of Urgency
Lam’s team started by impersonating customer support agents from reputable companies like Google and Gemini, a popular cryptocurrency exchange. They used phishing tactics to contact the victims, pretending to be representatives from these organizations. By creating a sense of urgency, they convinced their targets that their accounts were at risk of being compromised.
Use of Spoofed Numbers to Gain Credibility
To further enhance their credibility, the scammers used spoofed phone numbers that appeared legitimate, making it difficult for victims to distinguish between real support and fraudulent calls. Spoofing phone numbers is a common tactic used by cybercriminals to establish trust and make their communication seem more credible.
Manipulation to Reset Two-Factor Authentication (2FA) Settings
Once the scammers had the victims’ trust, they manipulated them into resetting their two-factor authentication (2FA) settings. By pretending to assist with “security issues,” the scammers convinced the victims to share sensitive information, such as authentication codes or access to their accounts. Disabling or changing the 2FA settings gave the criminals unrestricted access to the victims’ crypto wallets.
Deployment of AnyDesk for Remote Desktop Access
To further control their victims’ devices and gain access to critical information, Lam’s team employed a remote access tool called AnyDesk. This software allowed the scammers to remotely control the victims’ computers, bypassing any security measures that may have been in place. Once connected, the scammers could monitor activities, reset passwords, and extract private keys without the victim’s knowledge.
Extraction of Private Keys and Transfer of 4,100 Bitcoins
Using the access gained through AnyDesk, the scammers could extract the victim’s private keys. These keys are the only way to access and control Bitcoin wallets. Once they had the private keys, the scammers transferred the stolen Bitcoins, over 4,100 in total, into wallets they controlled. At the time of the theft, the stolen Bitcoin was worth over $230 million, making it one of the largest cryptocurrency heists in recent history.

How Lam’s Group Laundered $230 Million in Bitcoin:

After executing the heist, Malone Lam’s group had to launder the stolen cryptocurrency to conceal the origin of their funds and avoid detection. Crypto laundering is often a key part of large-scale crypto theft, as it involves moving funds through various channels to obscure their trail.
Mixing Services
One of the first steps taken by Lam’s team was to use mixing services, also known as “tumblers.” These services work by combining the stolen cryptocurrency with other funds from different sources and then redistributing it into smaller amounts.
Use of Decentralized Exchanges (DEXs)
To further obfuscate the stolen funds, the criminals likely used decentralized exchanges (DEXs) to convert Bitcoin into other cryptocurrencies. DEXs are harder to track and monitor compared to centralized exchanges.
Peer-to-Peer (P2P) Transfers
Lam’s group may have also relied on peer-to-peer (P2P) exchanges, where individuals can trade cryptocurrency directly without the involvement of centralized intermediaries. P2P platforms are often less regulated and can be used to conduct anonymous transactions, making them ideal for laundering large amounts of stolen crypto.
Onboarding Through Crypto ATMs
Another potential method used by the scammers to launder Bitcoin was through cryptocurrency ATMs, which allow users to convert crypto into cash or other assets. These ATMs often have minimal verification requirements and provide another way to turn cryptocurrency into spendable money without alerting authorities.
Purchase of Real-World Assets
Finally, Lam’s team spent the laundered funds on real-world luxury goods and assets. These included high-end cars, jewellery, and expensive real estate. By purchasing assets with the stolen funds, they could enjoy the fruits of their crime while disguising the origin of their wealth.

What Malone Lam Spent The Stolen Money On

After stealing over $230 million in Bitcoin, Malone Lam and his accomplices indulged in an extravagant lifestyle, using the stolen funds to buy luxury items and enjoy a lavish lifestyle. Here’s how they spent the money:

High-End Nightclub Spending $569,528.39 in a Single Night

One of the first things Malone Lam did with the stolen money was to splurge at a high-end nightclub. He spent an astonishing $569,528.39 in just one night, showcasing his desire for a flashy and expensive lifestyle.

Chartering Private Jets for Cross-Country Travel

Lam also spent a large sum chartering private jets for cross-country travel. These jets provided him with luxury and privacy, allowing him to move between cities without attracting attention.

Malone Lam with his crew on the private Jet: Instagram

Buying Luxury Cars and Jewelry

Luxury Cars: Lam and his team purchased multiple high-end vehicles, including custom Lamborghinis, Ferraris, and Porsches. These cars were not just about status—they were a symbol of the wealth Lam had gained from his crime.

Luxury Watches, Jewelry, and Designer Apparel: In addition to cars, Lam invested in high-end watches, jewellery, and designer clothing. His spending spree extended to items that showcased his newly acquired wealth.

Rental of Maison with Monthly Rents Up to $68,000

Lam rented a luxurious mansion to further flaunt his riches, with monthly rents reaching $62,000. The lavish property was just another display of his extravagant lifestyle funded by the stolen cryptocurrency.

Investigation and Arrest

Despite the efforts of these criminals to erase traces, it was their conspicuous spending that finally brought investigators to their doorstep. Law enforcement and blockchain experts, such as ZachXBT, had closely tracked the stolen Bitcoin.

1/ An investigation into how Greavys (Malone Iam), Wiz (Veer Chetal), and Box (Jeandiel Serrano) stole $243M from a single person last month in a highly sophisticated social engineering attack and my efforts which have helped lead to multiple arrests and millions frozen. pic.twitter.com/dcY1e9xsPd
— ZachXBT (@zachxbt) September 19, 2024

In carrying out the money laundering, there were several critical missteps, including inadvertently linking the stolen funds with their personal accounts. For example, Veer Chetal, aka “Wiz,” once accidentally revealed his full name during a screen recording, and Jeandiel Serrano, aka “Box,” reused deposit addresses, making it easier for any investigators to track the stolen funds back to them.

Quick Take
In mid-September 2024, the FBI, armed with this digital trail, launched a raid on Malone Lam’s Miami mansion. On September 19, Malone Lam was taken into custody surrounded by several luxury items he’d bought with the stolen Bitcoin.

Authorities were able to freeze more than $9 million in stolen funds, although much of the money is still in cryptocurrency wallets; $21 million of Box’s was still in crypto, $39 million of Wiz’s. Although Malone’s arrest marked the end of his extravagant lifestyle, the investigation is still ongoing to recover the remaining assets.

Will the Victim Get Their Money Back?

While law enforcement and blockchain experts are working hard to track the stolen Bitcoin, the road to full recovery is far from straightforward. The FBI and other agencies have managed to freeze and recover a portion of the funds, including $500,000, but a significant amount of the stolen cryptocurrency is still tied up in wallets. For instance, $21 million connected to Box and $39 million tied to Wiz remain inaccessible.

As for the luxury items purchased with the stolen money, many will be seized through a legal process known as asset forfeiture. This means that the expensive cars, watches, jewellery, and designer clothes purchased by Malone Lam will be confiscated by authorities.

Fast Check
These items are often put up for auction, with a portion of the proceeds being used to compensate the victim. However, the process of recovering funds through auctions is slow, and in some cases, the value of assets may be reduced due to damage or depreciation.

For example, some of Malone’s high-end cars, including the Mansory Lamborghini Urus and Porsche 911 GT3 RS, have already sustained damage, which could further lower their auction value. Moreover, money spent on services such as private jets or luxury clubs is lost for good, as these transactions are unlikely to be recovered.

Malone Lam posed with his Lamborghini: Instagram

In the end, while some of the stolen assets will likely be returned to the victim, it’s unclear how much of the total $230 million will be recovered.

Conclusion

The story of Malone Lam and his accomplices is a sobering reminder of how quickly greed and the illusion of untouchable wealth can dissipate. What looked to be a dream life-lavish nightclubs, luxury cars, and designer clothes was built on a foundation of stolen cryptocurrency, and it came tumbling down within months.

While authorities have managed to recover some of the stolen funds, the larger impact on the victim and the recklessness of Malone’s actions cannot be overstated. The criminal trio’s spending spree, meant to celebrate their success, ultimately led to their downfall and a trail of wrecked assets that cannot be fully undone.

A very wealthy client, indeed, brings forth, in this case, the vulnerability to scams and serves as an exceptional reminder that no crime, no matter how complicated in commission, will forever go without recognition.