California Man Sentenced to 70 Months for Money Laundering in $263M Crypto Theft Scheme

Gate News message, April 25 — A 22-year-old man from Newport Beach, California, Evan Tangeman, has been sentenced to 70 months in federal prison and 3 years of supervised release for his role in a multi-state social engineering crime ring that stole over $263 million in cryptocurrency, according to the U.S. Department of Justice.

The criminal organization has been operating since October 2023, using hacking and social engineering techniques to target victims. Members consisted primarily of unemployed youth under age 20 or in their early twenties, with origins traced to online gaming platforms. The group stole and laundered at least $3.5 million through various channels.

Tangeman was responsible for converting stolen cryptocurrency into fiat currency and arranging luxury property rentals in Los Angeles and Miami for group members. He also received high-end vehicles, including a Bentley and Lamborghini, as compensation. After the scheme was uncovered, Tangeman directed associates to destroy digital devices to obstruct the investigation.

The case was jointly investigated by the FBI’s Washington, Los Angeles, and Miami field offices, along with the IRS Criminal Investigation division. To date, nine defendants in the case have entered guilty pleas.