Eighth-Grade Dropout Admits to Stealing $245 Million in Bitcoin in Elaborate Phone Scam

A Heist Built on Lies and a Phone Call

In August 2024, Malone Lam and his associates used "social engineering" techniques to dupe a Washington, D.C., man out of bitcoin worth over $245 million. Two of Lam's co-conspirators posed as representatives of Google and the Gemini cryptocurrency exchange to manipulate the victim into giving them access to his Google Drive and revealing security codes — allowing Lam to siphon off over 4,100 bitcoin. It was a con built entirely on trust, technology, and a phone call. And it nearly worked perfectly.

Malone Lam, a 22-year-old Singaporean national and recent Miami resident, pleaded guilty on September 9 in U.S. District Court in Washington to one count of participating in a racketeering conspiracy for his role as ringleader of an international scheme that stole and laundered more than $245 million in cryptocurrency. An eighth-grade dropout who came to the U.S. from Singapore, Lam faces a maximum prison sentence of 20 years.

A Criminal Network Born in Online Gaming

Lam's co-conspirators, drawn from California, Connecticut, New York, Florida, and other countries, first connected with one another through online gaming platforms. The enterprise, which began no later than October 2023 and continued through at least May 2025, used social engineering and occasional home break-ins to obtain information that allowed members to drain victims' cryptocurrency wallets.

Court documents identify Lam as the ringleader who selected targets and assigned roles within the network, operating under online aliases including "Anne Hathaway" and "King Greavy." He is one of 18 defendants charged in the case and is the 11th to plead guilty, marking a major breakthrough for the Justice Department's investigation. A status hearing is set for December 8, 2026, according to the Justice Department.

The Spending Spree That Gave It All Away

What followed the theft was a month-long spending spree that prosecutors have described in granular detail. Lam and his associates acquired more than 30 luxury vehicles, including customized Lamborghinis, Ferraris, and Porsches, with some cars priced as high as $3.8 million apiece. They rented mansions in Miami, Los Angeles, and the Hamptons, chartered private jets, hired security details, and spent freely on high-end jewelry and watches. Nightclub bills reportedly reached $500,000 in a single evening at a Los Angeles venue. Investigators say the group also bought designer handbags — including Hermès Birkin bags — some of which were tossed into crowds during outings.

According to the indictment, an off-duty law enforcement officer tipped Lam off that federal agents were closing in, giving him time to attempt to destroy evidence. In the scramble, Lam threw his phone into Biscayne Bay — though investigators later recovered the device. The spending spree lasted just a month before FBI agents arrested Lam in Miami.

What This Case Signals for Crypto Security

The U.S. Department of Justice has described the case as "one of the largest cryptocurrency thefts from a private individual in the history of the United States." The method used — impersonating tech support — is a reminder that the most sophisticated financial crimes often rely not on hacking code, but on manipulating people. No firewall stops a convincing phone call.

As the broader case moves toward its conclusion, with a December status hearing on the calendar and several co-defendants still awaiting sentencing, the Lam case is likely to reshape how federal prosecutors approach crypto crime. It also serves as a stark warning to anyone holding significant digital assets: the weakest link in your security is rarely your wallet — it's the human on the other end of the line.