22-Year-Old Pleads Guilty In $263 Million Crypto Scheme
California Resident Pleads Guilty in $263 Million Crypto Theft Scheme
A 22-year-old California resident has pleaded guilty to his role in a multi-state social engineering scheme that stole roughly $263 million in crypto.
Evan Tangeman of Newport Beach, California, has admitted to laundering $3.5 million in cryptocurrency for the criminal enterprise, as announced by the U.S. Attorney’s Office on Monday.
Tangeman entered a guilty plea for participating 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, making him the ninth defendant to plead guilty in this specific investigation.
The court has unsealed the Second Superseding Indictment, adding three more defendants to the case. Nicholas Dellecave, also known as “Nic” or “Souja,” Mustafa Ibrahim, also known as “Krust,” and Danish Zulfiqar, also known as “Danny” or “Meech,” are facing charges of RICO conspiracy alongside other members of the Social Engineering Enterprise (SE Enterprise). Dellecave was arrested in Miami, while Ibrahim and Zulfiqar were recently apprehended in Dubai.
The criminal enterprise, which began in October 2023 and continued through at least May 2025, was formed through friendships established on online gaming platforms. The group consisted of individuals in California, Connecticut, New York, Florida, and overseas.
The Extent of the Crypto Crime
The elaborate scheme involved various roles such as database hackers, organizers, target identifiers, callers, and residential burglars who targeted hardware wallets containing cryptocurrency. Hackers utilized stolen databases to pinpoint high-value targets, while callers impersonated crypto exchange staff or email providers to deceive victims into disclosing account credentials. Burglars physically broke into homes to steal hardware wallets.
Tangeman’s role in the operation was that of a money launderer. He converted stolen cryptocurrency into cash using a bulk-cash converter, subsequently using the cash to secure rental homes for group members, often under fictitious names on the leases. Some properties rented for exorbitant amounts ranging from $40,000 to $80,000 per month in locations like Los Angeles and Miami.
The largest known theft occurred on Aug. 18, 2024, where Tangeman’s co-conspirators deceived a victim in Washington, D.C., into transferring over 4,100 Bitcoin valued at $263 million at the time. The same amount is now worth over $368 million. Tangeman also assisted in obtaining cash from stolen cryptocurrency to secure a rental property for another accomplice.
Following a co-conspirator’s arrest, Tangeman accessed home security systems to monitor FBI agents during searches and arranged for the retrieval and destruction of digital devices from the co-conspirator’s residence.
The stolen funds were used to finance a lavish lifestyle, including purchases of nightclub services, luxury handbags, high-end watches, designer clothing, rental homes, private jets, security personnel, and a fleet of at least 28 exotic cars.
Additional Defendants Charged
With Tangeman’s guilty plea, charges against three additional defendants have been unsealed, indicating that the investigation is ongoing. Authorities have not disclosed whether any of the stolen Bitcoin has been recovered or if restitution will be pursued.
The SE Enterprise relied on social engineering tactics rather than complex hacking methods, with operations stemming from online friendships that eventually led to high-profile purchases, ultimately exposing the group’s activities.
Tangeman is currently free pending sentencing, but federal penalties for RICO conspiracy and money laundering carry significant prison terms. The Justice Department has hinted at potential additional charges as the investigation progresses.
A RICO conspiracy involves individuals agreeing to partake in a pattern of criminal activity through an ‘enterprise.’ Prosecutors can consolidate separate crimes and individuals under a single charge using the Racketeer Influenced and Corrupt Organizations Act (RICO), focusing on proving a shared criminal objective rather than individual culpability for every act.
