22-Year-Old Sentenced to 70 Months for $263 Million Crypto Theft Money Laundering

California resident Evan Tangeman, 22, was sentenced on Friday to 70 months in federal prison for his role laundering proceeds from a multi-state cryptocurrency theft ring that stole approximately $263 million in digital assets from victims, according to the U.S. Department of Justice. U.S. District Judge Colleen Kollar-Kotelly handed down the sentence in the District of Columbia. Tangeman, of Newport Beach, pleaded guilty in December to a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy charge and also received three years of supervised release.

Defendant’s Role and Activities

Tangeman, who operated under online aliases including “E,” “Tate,” and “Evan|Exchanger,” admitted to converting at least $3.5 million in stolen cryptocurrency into cash through a bulk-cash converter. He also used fake names to lease luxury homes for members of the criminal group, according to prosecutors.

U.S. Attorney Jeanine Ferris Pirro of the District of Columbia characterized the operation as one “built on greed so brazen it borders on the cartoonish,” citing nightclub tabs, Lamborghinis, and Rolexes funded by stolen crypto. Pirro noted that Tangeman compounded his culpability by directing the destruction of evidence after several co-conspirators were arrested in 2024, conduct she described as demonstrating a “consciousness of guilt.”

Criminal Enterprise Structure

The criminal enterprise grew out of friendships formed on online gaming platforms, with members based across California, Connecticut, Florida, New York, and abroad. The group divided labor among database hackers, organizers, target identifiers, callers posing as exchange or Google support staff, and residential burglars who targeted victims’ hardware wallets, according to prosecutors.

Major Theft and Asset Seizures

The crew’s largest known theft occurred in August 2024, when members drained more than 4,100 Bitcoin (BTC) from a single Washington, D.C. victim. The stolen cryptocurrency was valued at approximately $230 million at the time of the theft and is now worth more than $321 million at current prices.

Federal agents seized a 2022 Rolls-Royce Ghost and a Porsche GT3 RS from Tangeman’s home, according to court filings. Prosecutors stated that co-defendant Malone Lam separately arranged the purchase of a Lamborghini Urus for Tangeman. Members of the broader group rented mansions in Los Angeles, the Hamptons, and Miami for between $40,000 and $80,000 per month, the U.S. Attorney’s Office said.

Co-Defendants and Investigation Status

Co-defendants Malone Lam and Jeandiel Serrano were arrested and charged in September 2024, after on-chain investigator ZachXBT publicly identified them and alleged co-conspirator Veer Chetal.

Tangeman’s plea in December coincided with the unsealing of a second superseding indictment that added three more defendants to the case: Nicholas Dellecave, Mustafa Ibrahim, and Danish Zulfiqar. The investigation, led by the FBI’s Washington Field Office and IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Will Hart, remains ongoing.