California man sentenced to prison for role in $250 million cryptocurrency theft ring

A 20-year-old California man has been sentenced to 78 months in prison for serving as a home invader and money launderer in a criminal network that stole more than 250 million dollars in cryptocurrency.

Marlon Ferro, also known online as GothFerrari and Marlo, was arrested on May 13, 2025, while carrying two firearms and a fake identification document. He later pleaded guilty in October and was also ordered to pay 2.5 million dollars in restitution and serve three years of supervised release, News.Az reports, citing Bleeping Computer.

According to court documents, the criminal ring targeted individuals believed to hold large amounts of cryptocurrency between late 2023 and early 2025. The group used social engineering tactics to gain access to victims’ digital wallets. When victims stored assets in hardware wallets, the operation shifted to residential burglaries carried out by Ferro.

US Attorney Pirro said Ferro acted as a “last resort” for the criminal enterprise when online fraud and hacking attempts failed. The group combined digital fraud with home invasions to steal cryptocurrency directly from victims.

In February 2024, Ferro traveled to Winnsboro, Texas, broke into a victim’s home, and stole a hardware wallet containing around 100 Bitcoins, valued at more than 5 million dollars at the time. He later laundered the funds through cryptocurrency exchanges. In July of the same year, he flew to New Mexico, monitored another victim’s home for several days, and broke in after confirming the victim had left, using information obtained through iCloud tracking.

Ferro also created fraudulent digital payment accounts using fake identification, allowing accomplices to spend stolen funds on luxury goods, nightclub expenses, and designer clothing worth more than 255,000 dollars. He later continued laundering cryptocurrency even after one of the group’s leaders was jailed, helping fund the leader’s legal defense.

Another member of the same criminal ring, 22-year-old Evan Tangeman from Newport Beach, was sentenced last month to 70 months in prison for laundering stolen funds from the same cryptocurrency scheme.

Authorities said a total of 14 suspects were charged in September 2024 and May 2025 in connection with a RICO conspiracy involving more than 4,100 Bitcoins, worth over 230 million dollars at the time. The stolen funds were moved through mixing services and cryptocurrency exchanges.

The group used the proceeds to finance a luxury lifestyle, including private security, expensive nightclub outings costing up to 500,000 dollars per night, international travel, high-end watches, designer handbags, and luxury properties. They also rented homes in the Hamptons, Los Angeles, and Miami for between 40,000 and 80,000 dollars per month, and used private jets and a fleet of at least 28 vehicles valued up to 3.8 million dollars.

News.Az 

By Leyla Şirinova