A 22-year-old California resident has pleaded guilty to participating in a multi-state social engineering scheme that stole approximately $263 million in virtual currency.
Evan Tangeman of Newport Beach, California, admitted to laundering $3.5 million in cryptocurrency for a criminal enterprise, the U.S. Attorney’s Office announced Monday.
Mr. Tangeman pleaded guilty before U.S. District Judge Colleen Kohler Kotelly to participating in a racketeer-influenced corruption organization (RICO) conspiracy.
Sentencing is scheduled for April 24, 2026. He is the ninth defendant in this particular investigation to enter a guilty plea.
The court also added three additional defendants and unsealed the second superseding indictment. Nicholas Derekav, also known as “Nick” or “Sawja,” Mustafa Ibrahim, also known as “Krust,” and Denmark Zulfiqar, also known as “Danny” or “Meech,” are charged with RICO conspiracy along with other members of Social Engineering Enterprises (SE Enterprises).
Delle Cavu was arrested in Miami on December 3, 2025. Ibrahim and Zulfiqar were recently arrested in Dubai.
According to prosecutors, the operation began in October 2023 and lasted until at least May 2025. It started with a friendship formed on an online gaming platform. This group included individuals from California, Connecticut, New York, Florida, and overseas.
Details of rampant virtual currency crime
The scheme involved database hackers, organizers, target identifiers, callers, and home robbers who targeted hardware wallets containing cryptocurrencies. Hackers used the stolen database to identify high-value targets.
Callers impersonated crypto exchange staff or email providers to trick victims into revealing their account credentials.
The robber physically entered the home to steal the hardware wallet.
Tangeman was laundering money. He used a bulk cash converter to convert the stolen cryptocurrency into cash. Tangeman then used the cash to obtain rental housing for members of his group, often using false names on the rental agreements.
Some properties rented for $40,000 to $80,000 per month. He secured homes in Los Angeles and Miami.
The largest known theft occurred on August 18, 2024. Tangeman’s co-conspirators, including Malone Lamb and Denmark Zulfiqar, tricked victims into transferring more than 4,100 Bitcoins in Washington, DC. At the time, the value of this cryptocurrency was $263 million. The same amount is now worth more than $368 million.
Mr. Tangeman also helped Mr. Lam obtain approximately $3 million in cash from stolen virtual currency to secure rental properties.
After Lamb’s arrest on September 18, 2024, Tangeman accessed his home security system and took screenshots of FBI agents searching him. He also asked another member to retrieve and destroy digital devices from Lam’s Los Angeles mansion.
Prosecutors alleged that the companies spent the stolen funds on a lavish lifestyle. Purchases included nightclub service worth up to $500,000 a night, luxury handbags, watches worth between $100,000 and $500,000, designer clothing, rental homes, private jets, security guards, and at least 28 exotic cars worth between $100,000 and $3.8 million.
Three additional defendants unsealed
With Tangeman’s guilty plea, prosecutors announced charges against three additional defendants. A second superseding indictment indicates the investigation is ongoing. Authorities have not said whether the stolen bitcoins have been recovered or whether they will seek compensation.
SE Enterprise relied on social engineering rather than sophisticated hacking techniques. The group’s activities began with online friendships, but the stolen funds gained attention by funding high-profile acquisitions.
Authorities said the defendants’ lavish spending helped expose their activities.
Mr. Tangeman remains free pending sentencing.
Federal penalties for RICO conspiracy and money laundering carry significant prison terms. The Justice Department has indicated that additional charges may be filed as the investigation continues.
A RICO conspiracy occurs when individuals agree to participate in a pattern of criminal activity, or racketeering activity, through an “enterprise.” Under the Racketeering Influenced and Corrupt Organizations Act (RICO), prosecutors can link individuals to separate crimes in a single charge.
The focus is on proving a common criminal purpose, not that all participants committed every act.
