US trial of Singaporean Malone Lam involved in alleged $340m crypto heist delayed

The trial of Malone Lam, a Singaporean accused of carrying out a cryptocurrency heist involving hundreds of millions of dollars, was delayed at the last minute on Monday (Oct 6).

The postponement was due to the case being "superseded with 11 more defendants and an additional RICO conspiracy count", they told CNA.

"We have a status conference at the end of October and we anticipate a trial date being set at that hearing," a spokesperson said.

Lam, 20, faces multiple charges which include wire fraud, money laundering and RICO conspiracy. His trial date was initially set for Oct 6.

According to the US Department of Justice, RICO refers to the Racketeer Influenced and Corrupt Organisations Act. It is a law which was designed to target mafia bosses, reported The Economist.

RICO conspiracy is a felony and the most serious charge Lam faces. It carries a maximum penalty of life imprisonment. Wire fraud and money laundering each carry up to 20 years' jail.

Lam and 12 of his associates had formed a "Social Engineering Enterprise" in late 2023 via online gaming platforms, according to prosecutors.

They allegedly devised a scheme to steal cryptocurrency valued at more than US$263 million (S$340 million) at the time.

The group identified people with vast amounts of crypto and sent them push notifications before calling them while impersonating support agents at Google or crypto exchanges, said prosecutors.

Once on the phone, victims were tricked into handing over their passwords, private keys, seed phrases and their login details.

Using this information, Lam and his associates allegedly accessed the victims accounts, stole their virtual currencies, laundered them in offshore exchanges, and converted them into hard cash.

This includes an unnamed victim in Washington DC whom prosecutors say Lam swindled out of 4,100 Bitcoins — worth US$245 million at the time. Lam and others are also accused of stealing over US$14 million in cryptocurrency from an additional victim.

Lam allegedly bought a fleet of exotic cars ranging in value from US$100,000 to US$3.8 million with the money. He is also said to have spent the stolen funds on expensive jewellery, luxury handbags and clothing, as well as private jet and home rentals.

In an attempt to cover their tracks and obscure their identity, the homes and cars were put in other people's names, said prosecutors.

Moreover, up to US$500,000 was spent in a single night at clubs while some of the money was allegedly distributed to associates inside stuffed plush toys.

One toy was allegedly stuffed with US$50,000 in cash, according to prosecutors.

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bhavya.rawat@asiaone.com