A 22-year-old resident of California has pled guilty in connection with a multi-state social engineering scheme that resulted in the theft of approximately $263 million in cryptocurrency.

Evan Tangeman, hailing from Newport Beach, California, has acknowledged laundering $3.5 million in cryptocurrency for this criminal enterprise, as announced by the U.S. Attorney’s Office on Monday.

Tangeman entered his guilty plea regarding participation in a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy before U.S. District Court Judge Colleen Kollar-Kotelly.

Sentencing is scheduled for April 24, 2026, and he becomes the ninth individual to plead guilty in this ongoing investigation.

Moreover, the court has unsealed the Second Superseding Indictment, which introduces three additional defendants: Nicholas Dellecave (also referred to as “Nic” or “Souja”), Mustafa Ibrahim (known as “Krust”), and Danish Zulfiqar (also referred to as “Danny” or “Meech”). These individuals now face RICO conspiracy charges, alongside other members of the Social Engineering Enterprise (SE Enterprise).

Dellecave was apprehended in Miami on December 3, 2025, while Ibrahim and Zulfiqar have recently been arrested in Dubai.

According to prosecutors, the enterprise commenced operations in October 2023 and persisted until at least May 2025. It originated from relationships built within online gaming communities, comprising individuals from California, Connecticut, New York, Florida, and various international locations.

Details of the Rampant Crypto Crime

The scheme involved a diverse group of individuals, including database hackers, coordinators, target identifiers, callers, and residential burglars targeting hardware wallets containing cryptocurrency. Hackers utilized stolen databases to identify high-value targets.

Callers impersonated representatives of cryptocurrency exchanges or email service providers to deceive victims into disclosing their account credentials.

Burglars executed physical break-ins to steal hardware wallets.

Tangeman’s role was that of a money launderer; he converted stolen cryptocurrency into cash via bulk-cash converters. Subsequently, he used the cash to secure rental properties for components of the group, often employing fictitious names on the lease agreements.

Some of these properties rented for between $40,000 and $80,000 monthly, ranging from locations in Los Angeles to Miami.

The most significant theft recorded transpired on August 18, 2024, when Tangeman’s associates deceived a target in Washington, D.C., into transferring over 4,100 Bitcoin. At the time of the act, the value of the crypto was approximately $263 million—now worth over $368 million.

Additionally, Tangeman assisted in obtaining roughly $3 million in cash from stolen cryptocurrency to secure a rental property.

Following the arrest of co-conspirator Malone Lam on September 18, 2024, Tangeman attempted to access home security systems to capture screenshots of FBI agents conducting searches. He also requested another group member to recover and dispose of digital devices from Lam’s residence in Los Angeles.

Prosecutors indicated that members of the enterprise allocated stolen funds towards a lavish lifestyle, which included nightclub services costing as much as $500,000 per night, luxury handbags, high-value watches, designer clothing, rental properties, private jets, security personnel, and a collection of at least 28 exotic vehicles valued between $100,000 and $3.8 million.

Three Additional Defendants Unsealed

The unsealing of charges against three additional defendants coincided with Tangeman’s guilty plea. The Second Superseding Indictment underscores that the investigation remains active. Authorities have not disclosed whether any of the stolen Bitcoin has been recovered or if restitution is being pursued.

The SE Enterprise’s approach depended more on social engineering tactics than on advanced hacking techniques. Initially stemming from online friendships, the misappropriated funds were used for high-profile purchases, which ultimately attracted law enforcement scrutiny.

Authorities noted that the defendants’ extravagant spending habits were instrumental in drawing attention to their unlawful activities.

Tangeman is currently free pending sentencing.

Federal penalties for RICO conspiracy and money laundering may involve substantial prison sentences. Furthermore, the Justice Department has indicated the possibility of additional charges as the investigation progresses.

A RICO conspiracy occurs when individuals agree to participate in a pattern of criminal activity through an ‘enterprise.’ Under the Racketeer Influenced and Corrupt Organizations Act (RICO), prosecutors can link separate offenses and individuals under a unified charge, focusing on demonstrating a collective criminal goal rather than requiring that every participant committed every act.

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