According to a superseding indictment filed Oct. 29, 2025, federal prosecutors allege that a Social Engineering Enterprise stole more than $245 million in cryptocurrency and laundered the proceeds. The filing charges the defendants with racketeering, conspiracy to commit wire fraud and conspiracy to launder monetary instruments.
Modus Operandi of the Criminal Enterprise
The indictment details how the group evolved from gaming friendships into a sophisticated organization comprised of database hackers, callers, money launderers, and residential burglars. Their targets extended to hardware wallets both within the United States and internationally. The alleged scheme involved harvesting databases of cryptocurrency holders, triggering account alerts, and then impersonating support staff from email providers or virtual currency exchanges. Through these deceptions, they obtained passwords, seed phrases, and private keys. Subsequently, they moved approximately $245,093,239 in stolen cryptocurrency through mixers, Monero conversions, and unlicensed crypto-to-cash and crypto-to-wire services.
Alleged Laundering and Seized Assets
Prosecutors assert that the illicit proceeds were converted into fiat currency and used to fund a lavish lifestyle. Expenditures reportedly included nightclubs, mansions in exclusive locations such as Los Angeles, the Hamptons, and Miami, exotic cars like Ferraris and Lamborghinis, and high-end watches and jewelry. These assets are now listed as property subject to forfeiture. In addition to these luxury items, USDT and ETH balances are also included in the forfeiture proceedings. Should the defendants be convicted, the United States government may seek a money judgment. Furthermore, where assets cannot be located or have been transferred or diminished in value, the government may pursue forfeiture of substitute property to recover the full value of the stolen cryptocurrency.