Singaporean citizen Malone Lam and his friend Jiandiel Serrano are in court after being accused of a sophisticated cryptocurrency theft scheme. Court documents reveal a carefully planned operation involving fake alerts, deception, and complex social engineering.

The scam began when the alleged criminals sent fake Google account access alerts to the victim, making it seem like someone from overseas was trying to hack his account. To create this effect, they used proxy servers and VPNs to disguise the origin of these alerts. 

Shortly after, on August 18, the two suspects posing as Google support representatives to defraud the victim. They claimed there had been hacking attempts on his account and convinced him to share his security codes. With these codes, one of the suspects, Lam, accessed the victim’s Gmail and OneDrive accounts, where he found cryptocurrency exchange records with Gemini.

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The suspects took their scam further by pretending to be Gemini security staff. They told the victim his account had been compromised, persuading him to transfer about $3 million worth of cryptocurrency to a wallet they controlled. 

To maintain access, they instructed the victim to install a remote desktop tool, which allowed them direct access to his computer. With this, they located private keys to over 4,100 Bitcoin, which Lam quickly stole.

Embed: https://x.com/zachxbt/status/1836752923830702392 

Prosecutors presented evidence showing Lam and his accomplice planning the scam online, using aliases like “$$$” and “Anne Hathaway” on Telegram and Discord. Authorities connected these accounts to Lam through photos and other documents, including an image of Lam with a new white sports car.

After stealing the funds, Lam and his partner, Serrano, attempted to launder the money through various cryptocurrency exchanges, including TradeOgre. However, Serrano made a critical error by creating an account on TradeOgre without using a VPN, which linked the account to his real IP address.

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Following the heist, Lam reportedly went on a lavish spending spree. He was seen spending hundreds of thousands of dollars at nightclubs in Los Angeles and buying luxury cars, including Lamborghinis and Ferraris. Authorities noted a receipt of over $569,000 from one nightclub visit. 

Despite trying to cover their tracks, both men were eventually caught. Serrano was detained at Los Angeles International Airport after returning from vacation, while Lam was arrested in Miami, where he had continued his extravagant lifestyle. Police seized nine luxury cars and expensive watches from Lam’s Miami properties.

Both men now face up to 20 years in prison on charges of wire fraud and money laundering. Prosecutors are urging the court to keep Lam in custody due to his remaining unaccounted-for assets, which could enable him to flee.

This case highlights the lengths criminals will go to exploit cryptocurrency and underscores the importance of securing digital assets for both individuals and businesses.