EP 23: Crypto Scam Kingpins: The $245M Scam That Shocked America!

Crypto Scam: Episode Overview

In one of our most jaw-dropping episodes to date, Behind the Scams pulls back the curtain on a newly unsealed federal indictment that reveals a sprawling, highly organized cryptocurrency fraud operation. This is not your average crypto scam — it’s a full-blown cybercrime syndicate that used high-level social engineering, psychological manipulation, and tech-savvy laundering strategies to steal more than $245 million in digital currency from unsuspecting victims across the United States.

Nick and Sue walk you through this complex case, breaking down how a cast of characters with nicknames like “King Greavys,” “Papa,” “GothFerrari,” and “The Accountant” ran a modern-day digital mafia. Their crimes ranged from email phishing and cold-calling impersonations to physical break-ins and underground cash exchanges.

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How the Criminal Enterprise Worked

Federal prosecutors allege this crew operated under what they called the “Social Engineering Enterprise,” a structured criminal network with clearly defined roles:

• Database Hackers who stole personal data and login credentials
• Organizers and Target Identifiers who picked out high-value victims
• Callers and Impersonators who contacted victims pretending to be from tech support or crypto exchanges
• Money Launderers who converted stolen virtual currency into real-world luxury assets
• Residential Burglars who broke into homes to steal hardware wallets

This was a tightly organized operation that mirrored a Fortune 500 company in structure—but instead of selling services, they specialized in stealing digital wealth.

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How They Got the Money and How They Spent It

From offshore exchanges to unlicensed crypto-to-cash services, the fraudsters allegedly deployed a wide range of laundering tactics. They converted Bitcoin into Monero to hide transactions, smuggled fiat cash in squishmallow toys, and even used straw owners to hide their luxury cars and homes.

And the spending? Outrageous. The indictment outlines a lifestyle that included:

• $500,000 nights at nightclubs
• Luxury handbags handed out as party favors
• Designer clothing, exotic watches, and private jet rentals
• Multi-million-dollar real estate in Los Angeles, the Hamptons, and Miami

All while their victims were left financially and emotionally devastated.

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Crypto Scam: The Arrests and the Cover-Up

When the kingpin, Malone Lam, was finally arrested in September 2024, the operation didn’t immediately crumble. In fact, fellow conspirators attempted to destroy evidence, coordinate legal fees, and even continue running scams while Lam was in jail. Communications continued through jailhouse phone calls, encrypted messaging, and intermediaries still loyal to the cause.

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⚖️ The Charges They Face

The federal indictment lays out a series of serious charges:

• RICO Conspiracy (Racketeer Influenced and Corrupt Organizations Act)
• Conspiracy to Commit Wire Fraud
• Conspiracy to Launder Monetary Instruments
• Obstruction of Justice

Chapters

• (00:00:00) - Behind the Scams: Crypto Crime Lords Inside the $263 Million
• (00:01:09) - Behind The Scams
• (00:02:43) - Who Are The Defendants in the Case?
• (00:04:37) - Felons Arrested in Connection With Money Laundering
• (00:06:13) - The Indictment: Social Engineering Enterprise
• (00:10:09) - Cryptocurrency, Virtual Currency, Wallets
• (00:13:41) - Crypto Money Stealing With 'Seed phrase'
• (00:14:56) - Bitcoin, Hosted Wallet and Other Cryptocurrencies
• (00:16:37) - The Role of the Social Engineering Enterprise
• (00:20:54) - How the SE Enterprise Stole Virtual Currency
• (00:28:50) - The Crypto Money Laundering Case
• (00:36:16) - How the SE Enterprise Money Laundering Conspiracy
• (00:44:44) - The SE Enterprise's Role in the Malone Lamb Case
• (00:50:23) - The Crypto Scam defendants face federal charges
• (00:54