Trial of Singaporean Malone Lam accused of brazen crypto heist delayed in the US
Malone Lam faces a number of charges, including wire fraud, money laundering and RICO conspiracy - a charge traditionally used to put mafia bosses behind bars.
Malone Lam, a 20-year-old Singaporean who lives in Miami and Los Angeles, was among two people charged with conspiring to steal and launder US$230 million in cryptocurrency on Sep 19, 2024. (Photo: Broward Sheriff's Office)
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The highly anticipated trial in the US of Singaporean Malone Lam, who is accused of carrying out a brazen heist of hundreds of millions of dollars in cryptocurrency, was delayed on Monday (Oct 6) at the last minute.
The prosecutor's office told CNA that the trial was postponed because they "superseded with 11 more defendants and an additional RICO Conspiracy count".
"We have a status conference at the end of October and we anticipate a trial date being set at that hearing," a spokesperson told CNA.
Lam faces a number of charges, including wire fraud, money laundering and RICO conspiracy - a charge traditionally used to put mafia bosses behind bars.
Prosecutors allege that Lam and 12 associates formed a "Social Engineering Enterprise" in late 2023, born out of friendships formed in online gaming platforms.
They allegedly devised a scheme to steal cryptocurrency valued at more than $260 million at the time.
According to prosecutors, they identified people with vast amounts of crypto, sent them push notifications, then called them pretending to be support agents at Google or crypto exchanges.
Once on the phone, the victims were tricked into handing over their passwords, private keys, seed phrases and their login details.
Using that information, Lam and his associates allegedly accessed the victim's accounts, stole their virtual currencies, laundered them in offshore exchanges, and then converted them into hard cash.
This includes an unnamed victim in Washington DC that prosecutors say Lam swindled out of 4,100 Bitcoins, which were valued at US$245 million at the time.
Prosecutors say the money was spent lavishly. Lam allegedly bought a fleet of exotic cars ranging in value from US$100,000 to up to US$3.8 million.
The stolen money was also allegedly spent on expensive jewellery, luxury handbags and clothing, as well as private jet and home rentals. Prosecutors say up to US$500,000 was spent in a single night at clubs.
In an attempt to cover their tracks and obscure their identity, prosecutors say the homes and cars were put in other people’s names.
Some of the money was also allegedly distributed to associates inside stuffed plush toys. One "squishmallow" was allegedly stuffed with US$50,000 in cash.
The RICO charge, which is a felony, is the most serious, with a maximum penalty of life imprisonment. Wire fraud and money laundering each carry up to 20 years in jail.
