US Department of Justice Sentences Member of $263 Million Crypto Fraud Scheme to 70 Months in Prison, Involving Social Engineering Fraud and Lavish Money Laundering

Odaily Planet Daily News: The U.S. Department of Justice (DOJ) announced that a 22-year-old California man, Evan Tangeman, has been sentenced to 70 months (approximately 5 years and 10 months) in prison, followed by 3 years of supervised release, for his involvement in a criminal organization that stole approximately $263 million in crypto assets through social engineering fraud and home invasions.

According to court documents, Tangeman pleaded guilty in December 2025, admitting to helping the criminal network launder at least $3.5 million in illicit funds.

The criminal group allegedly used the stolen funds for lavish spending, including multi-million dollar nightclub bills, Lamborghini sports cars, and high-end assets like Rolex watches.

U.S. District Attorney for the District of Columbia, Jeanine Pirro, stated in a release that the organization "built a criminal system based on nearly absurd greed," emphasizing that Tangeman not only participated in money laundering but also destroyed evidence after his accomplices were arrested, demonstrating clear criminal intent.

This sentencing comes as data shows that the crypto industry suffered $482 million in losses from scams and hacks in the first quarter of 2026, with social engineering fraud and physical violent robberies on the rise. (Cointelegraph)