On April 24, a California-based money launderer was sentenced to 70 months in prison for his role in a sprawling social engineering scheme that stole more than $263 million in cryptocurrency, according to the U.S. Attorney’s Office for the District of Columbia.
According to the DOJ’s press release, Evan Tangeman, 22, of Newport Beach, was sentenced in the U.S. District Court for the District of Columbia after pleading guilty to participating in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. In addition to his prison term, Judge Kollar-Kotelly ordered him to serve three years of supervised release.
Laundering for the social engineering enterprise
Tangeman admitted that he helped launder at least $3.5 million in proceeds generated by the criminal enterprise. The group, which operated from at least October 2023 through May 2025, consisted of individuals across California, Connecticut, New York, Florida, and internationally.
The operation originated from friendships formed on online gaming platforms and evolved into a coordinated cybercrime network. Members took on distinct roles, including database hackers, organizers, target identifiers, scam callers, and even residential burglars who targeted hardware cryptocurrency wallets.
Tangeman, who also went by aliases including “E,” “Tate,” and “Evan|Exchanger,” played a central role in converting stolen cryptocurrency into fiat currency and helping the group move funds without detection.
The group’s “crown jewel” heist occurred in August 2024, where they fraudulently drained 4,100 Bitcoin (BTC)—worth $263 million at the time—from a single D.C.-based investor.
Greed “borders on the cartoonish”
U.S. Attorney Jeanine Ferris Pirro condemned the group’s actions and excessive lifestyle, noting, “This criminal enterprise was built on greed so brazen it borders on the cartoonish. They stole millions, spent it on half-million-dollar nightclub tabs, Lamborghinis, and Rolexes.”
The investigation also revealed that members—many of whom were unemployed and under the age of 20—used stolen cryptocurrency to fund extravagant lifestyles. This included splurging on nightclub outings costing up to $500,000 per night, distributing luxury handbags worth tens of thousands at parties, and purchasing high-end watches priced between $100,000 and over $500,000.
Their spending also extended to designer clothing, private jet travel, and dedicated security teams, while they rented luxury mansions in Los Angeles, Miami, and the Hamptons for $40,000 to $80,000 per month—some properties valued between $4 million and nearly $9 million. The group also amassed a fleet of exotic cars worth between $100,000 and as much as $3.8 million.
Tangeman served as the group’s “fixer,” using fake names to secure luxury rentals and converting crypto into fiat. As compensation, ringleader Malone Lam purchased a widebody Lamborghini Urus for him. Upon Tangeman’s arrest, FBI agents seized a 2022 Rolls-Royce Ghost (valued at $300,000) and a Porsche GT3 RS.
Obstruction and ongoing investigation
Tangeman’s sentence was influenced by his attempt to obstruct the investigation. After co-defendants Malone Lam and Jeandiel Serrano were arrested in September 2024, Tangeman directed co-defendant Tucker Desmond to destroy all digital evidence.
The case, investigated by the FBI and IRS-CI with assistance from on-chain sleuth ZachXBT, remains active. While nine defendants have pleaded guilty, several others added in a May 2025 superseding indictment remain at large, including two believed to be hiding in Dubai.
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