California Man Gets 6½ Years as FBI Ties $250M Crypto Heists to Home Burglaries

A federal court has sentenced a California man to 78 months in prison for his role in a social engineering conspiracy that authorities say stole more than $250 million in cryptocurrency.

• Key Takeaways:
• • Ferro received 78 months for a $250 million RICO scheme targeting U.S. cryptocurrency holders.
• • Bitcoin and hardware wallet users face rising physical threats as crypto fraud evolves beyond the screen.
• • The FBI and IRS-CI continue monitoring global networks to seize assets and pay $2.5 million in restitution.

The ‘Instrument of Last Resort’

A U.S. federal court has sentenced a California man to 6 1/2 years in prison for his role in a social engineering conspiracy that authorities say stole more than $250 million in cryptocurrency.

Marlon Ferro, 20, of Santa Ana, was also ordered by U.S. District Judge Colleen Kollar-Kotelly to serve three years of supervised release and pay $2.5 million in restitution. Ferro, known by the online alias “GothFerrari,” pleaded guilty in October to conspiracy to participate in a racketeering-influenced and corrupt organization (RICO).

In a statement, U.S. Attorney Jeanine Ferris Pirro described Ferro as the “instrument of last resort” for a criminal enterprise that spanned the United States and several foreign countries.

“When his co-conspirators couldn’t deceive victims into handing over access to their cryptocurrency or hack their way into digital accounts, they turned to Ferro to break into homes and steal hardware wallets outright,” Pirro said.

According to court documents, the enterprise operated between late 2023 and early 2025, employing specialists for database hacking, money laundering, and residential burglary. Conspirators used the stolen funds to finance a lavish lifestyle, including $500,000 nights at nightclubs, private jets, exotic cars valued up to $3.8 million, and luxury handbags used as party favors.

Federal investigators detailed Ferro’s specific role in two high-profile thefts. In February 2024, Ferro broke into a home in Winnsboro, Texas, and stole a hardware wallet containing 100 bitcoin, valued at more than $5 million at the time.

In July 2024, Ferro traveled to New Mexico, where he used a hidden cellphone to monitor a victim’s movements. After co-conspirators tracked the victim’s location via a compromised iCloud account, Ferro smashed a window with a brick to search for hardware wallets. He was caught on the home’s surveillance system.

Beyond the burglaries, Ferro acted as a primary money launderer. Using fraudulent identification, he opened digital payment accounts that allowed the group to spend stolen assets at retail stores and nightclubs. Investigators say he also used illicit funds to pay legal fees for the conspiracy’s leader following an arrest in September 2024.

Ferro was arrested on May 13, 2025. At the time of his arrest, he was in possession of two firearms and forged identification documents. The case was investigated by the Federal Bureau of Investigation (FBI) and IRS Criminal Investigation units in Washington, with support from field offices in Los Angeles and Miami.