22-year-old American man admits involvement in $263 million Bitcoin fraud case, laundered over $3.5 million

The US Department of Justice has announced that a key figure in a social engineering scam involving $263 million worth of Bitcoin has pleaded guilty. Evan Tangeman, a 22-year-old California resident, admitted in district court to participating in money laundering in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), with the amount involved exceeding $3.5 million. He is the ninth defendant to plead guilty in the case.

The scam operated from October 2023 to May 2025, with members of the group located across various US states and overseas. The group included hackers, organizers, target identifiers, phone solicitors, and thieves who stole hardware wallets, collectively stealing about 4,100 Bitcoins—worth approximately $263 million at the time, and now valued at around $371 million. Hackers infiltrated websites to obtain cryptocurrency-related databases, target identifiers singled out high-value victims, and phone solicitors manipulated victims over the phone, making the scam operation highly sophisticated.

Tangeman primarily assisted in converting the stolen cryptocurrency into cash via bulk cash converters and signed real estate leases under false names to provide cover residences for group members. The proceeds were used for nightclub services, luxury handbags, watches, luxury cars, private jets, and hiring security personnel. Tangeman’s sentencing hearing is scheduled for April 24, 2026.

Additionally, the court released a superseding indictment charging three more defendants—Nicholas Drelacav, Mustafa Ibrahim, and Danish Zulfikar—who were recently arrested. The case highlights the risks of cryptocurrency in cybercrime and serves as a reminder for regulatory and law enforcement agencies to strengthen monitoring of large-scale crypto asset flows. (The Block)