US Department of Justice sentences member involved in $263 million crypto fraud case to 70 months in prison, involving social engineering scams and luxury money laundering

Odaily Planet Daily News: The US 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 scams and home invasions.

According to court documents, Tangeman pleaded guilty in December 2025, admitting to assisting the criminal network in laundering at least $3.5 million in illegal funds.

The criminal group is alleged to have used the stolen funds for lavish spending, including multimillion-dollar nightclub bills, Lamborghini sports cars, and luxury assets such as Rolex watches.

In a statement, US Attorney for the District of Columbia, Jeanine Pirro, stated that the organization "built a criminal system based on near-absurd greed" and emphasized that Tangeman not only participated in money laundering but also destroyed evidence after his accomplices were arrested, demonstrating clear criminal intent.

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