California man Marlon Ferro was sentenced to 78 months for stealing cold wallets worth $250 million

According to an official statement released by the U.S. Department of Justice (DOJ) on May 7, 20-year-old California man Marlon Ferro was sentenced by a federal court to 78 months in prison for his role in a nationwide crypto asset social-engineering scam, along with 3 years of supervised release and $2.5 million in restitution. Per the DOJ statement, the criminal group stole more than $250 million in crypto assets from multiple victims.

Sentencing details and charges

Per the DOJ statement, the sentence was handed down by federal judge Colleen Collar-Kotelly on May 7, 2026 (Wednesday). Ferro pleaded guilty before Judge Collar-Kotelly in October 2025, admitting to one count of conspiracy—participation in a corrupt organization involved in racketeering (RICO-related charge).

In the statement, U.S. Federal Prosecutor Jeanine Ferris Pirro said Ferro “acted as the last-resort tool of the criminal group,” and directly quoted: “When his co-conspirators could not obtain the victims’ cryptocurrency account access through deception methods, nor could they compromise digital accounts through hacking techniques, they would turn to Ferro to break in and steal hardware wallets.”

How the criminal group operated and Ferro’s specific actions

Per the DOJ statement, federal investigations spanning multiple years showed that the social-engineering criminal group primarily targeted individuals holding large amounts of crypto assets. Members’ roles included:

· Database intrusion and identification of high-value targets

· Fraud phone calls (social engineering)

· Break-ins to steal hardware crypto wallets

· Laundering criminal proceeds via cryptocurrency exchanges

The DOJ statement documents two specific break-in thefts by Ferro: in February 2024, Ferro traveled to Texas, broke into a victim’s residence, and stole a hardware wallet containing roughly 100 BTC (worth more than $5 million); in July 2024, Ferro broke into another residence in New Mexico to search for hardware wallets, and the theft process was fully recorded by surveillance cameras.

Per the DOJ statement, Ferro was arrested in May 2025. Police found two guns and a forged identification document on him.

Law enforcement action background data

According to statistics from the Federal Bureau of Investigation (FBI), crypto fraud losses in the U.S. totaled $11.3 billion in 2024, a record high, accounting for more than 50% of the FBI’s total reported annual internet crime losses of $20.9 billion.

Per an official FBI release, in April 2026, a global joint law enforcement operation led by the FBI arrested 276 criminal suspects and dismantled 9 crime dens related to crypto fraud.

In the DOJ statement, federal prosecutors said: “Today’s sentence delivers a clear message: crypto fraud is not a victimless crime with no consequences—it results in incarceration in federal prison.”

FAQ

What was Marlon Ferro’s specific role in this case?

Per the DOJ statement, Ferro was responsible for break-ins within the criminal group—specifically, after cyber-fraud tactics failed, he would directly enter victims’ homes to steal hardware crypto wallets, and he also helped launder the criminal proceeds through cryptocurrency exchanges.

What does the final sentence in this case include?

Per the DOJ’s May 7, 2026 statement, Ferro was sentenced to 78 months in federal prison, 3 years of supervised release, and $2.5 million in restitution, for conspiracy to participate in a corrupt organization affected by racketeering.

What is the source of the $250 million involved in this case?

According to the DOJ’s official statement, the $250 million is the total amount of crypto assets theft attributed to the criminal group by federal prosecutors during the period from late 2023 to early 2025, covering losses suffered by multiple victims.