Crypto Scam: Episode Overview

In one of our most jaw-dropping episodes to date, Behind the Scams pulls back the curtain on a newly unsealed federal indictment that reveals a sprawling, highly organized cryptocurrency fraud operation. This is not your average crypto scam — it’s a full-blown cybercrime syndicate that used high-level social engineering, psychological manipulation, and tech-savvy laundering strategies to steal more than $245 million in digital currency from unsuspecting victims across the United States.

Nick and Sue walk you through this complex case, breaking down how a cast of characters with nicknames like “King Greavys,” “Papa,” “GothFerrari,” and “The Accountant” ran a modern-day digital mafia. Their crimes ranged from email phishing and cold-calling impersonations to physical break-ins and underground cash exchanges.

How the Criminal Enterprise Worked

Federal prosecutors allege this crew operated under what they called the “Social Engineering Enterprise,” a structured criminal network with clearly defined roles:

• Database Hackers who stole personal data and login credentials





• Organizers and Target Identifiers who picked out high-value victims





• Callers and Impersonators who contacted victims pretending to be from tech support or crypto exchanges





• Money Launderers who converted stolen virtual currency into real-world luxury assets





• Residential Burglars who broke into homes to steal hardware wallets

This was a tightly organized operation that mirrored a Fortune 500 company in structure—but instead of selling services, they specialized in stealing digital wealth.

How They Got the Money and How They Spent It

From offshore exchanges to unlicensed crypto-to-cash services, the fraudsters allegedly deployed a wide range of laundering tactics. They converted Bitcoin into Monero to hide transactions, smuggled fiat cash in squishmallow toys, and even used straw owners to hide their luxury cars and homes.

And the spending? Outrageous. The indictment outlines a lifestyle that included:

• $500,000 nights at nightclubs





• Luxury handbags handed out as party favors





• Designer clothing, exotic watches, and private jet rentals





• Multi-million-dollar real estate in Los Angeles, the Hamptons, and Miami

All while their victims were left financially and emotionally devastated.

Crypto Scam: The Arrests and the Cover-Up

When the kingpin, Malone Lam, was finally arrested in September 2024, the operation didn’t immediately crumble. In fact, fellow conspirators attempted to destroy evidence, coordinate legal fees, and even continue running scams while Lam was in jail. Communications continued through jailhouse phone calls, encrypted messaging, and intermediaries still loyal to the cause.

⚖️ The Charges They Face

The federal indictment lays out a series of serious charges:

• RICO Conspiracy (Racketeer Influenced and Corrupt Organizations Act)





• Conspiracy to Commit Wire Fraud





• Conspiracy to Launder Monetary Instruments





• Obstruction of Justice (for those who destroyed evidence or intimidated witnesses)

The government is also seeking asset forfeiture, including over 20 exotic vehicles, hundreds of thousands of dollars in luxury goods, and bags of literal cash.

️ What This Means for You

This episode isn’t just about the criminal empire—it’s a wake-up call for anyone using cryptocurrency or navigating online financial platforms. It’s a stark reminder of how cunning and calculated scammers have become, and how vital it is to understand:

• What social engineering looks like





• Why you should never give out seed phrases or passwords





• The importance of hardware wallets and 2FA





• How to spot fake tech support or suspicious login alerts





• Why Monero, Tether, and crypto laundering tactics matter

Protect Yourself Before It’s Too Late

Nick and Sue share actionable advice to help protect yourself against modern fraud tactics—especially as cryptocurrency becomes more common in everyday life. From strengthening your digital security to verifying suspicious emails and calls, you’ll walk away from this episode with a toolkit to defend your assets and identity from even the most sophisticated scams.

Report a Scam or Learn More

If you or someone you know may have been affected by crypto fraud or any kind of scam, don’t wait:
️ Report the scam or get help at: https://stampoutscams.org/links/
Watch more scam investigations on YouTube: https://www.youtube.com/@ScamTV

Support the Mission

Stamp Out Scams is a registered nonprofit working to educate, support, and protect scam victims. If you found this episode informative, consider donating to help us reach more people:
❤️ https://stampoutscams.org/donate-now/