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Party’s Over for Crypto Scammers Who Went on a Spending Spree After a $240 Million Bitcoin Theft
Malone Lam's plea hearing approaches in the $240 million bitcoin social engineering theft; the case highlights surging crypto fraud and limited enforcement.
Malone Lam, accused of organizing a social engineering attack that stole over $240 million in bitcoin (4,100+ BTC) from a Washington, D.C. resident in August 2024, has a plea agreement hearing set. Callers impersonating Google and Gemini staff tricked the victim into revealing security codes. Lam and 17 co-defendants spent lavishly before FBI arrests; crypto investment fraud complaints to the FBI rose nearly 50% in 2025 while DOJ disbanded its crypto crimes unit.
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Hackers Drain $320 Million From Liquid Network, Then Return Most of It
Hackers exploited an Elements bug to drain about 4,000 BTC (~$320M) from Liquid Network's federation wallet, then returned 3,400 BTC after Blockstream patched.
An attacker drained roughly 4,000 of 4,200 BTC (~$320M) from Bitcoin's Liquid Network federation wallet on September 6 by exploiting a bug in Elements, the open-source code powering the sidechain, which allowed unbacked L-BTC tokens that were redeemed for real Bitcoin through SideSwap's authorized peg-out mechanism. The self-described white-hat attackers negotiated publicly via OP_RETURN on-chain messages, demanding the bridge nodes be patched before returning 3,400 BTC (~$262.6M) and keeping about 598 BTC (~$47M). Blockstream confirmed the affected bridge nodes were patched; the network remains paused while federation members complete security work, and experts debate whether the act legally constitutes extortion.
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Alby Hub Critical Flaw Could Let Attackers Take Over Internet-Exposed Bitcoin Wallets
Alby warns a critical flaw in internet-exposed Alby Hub Bitcoin wallets (v1.7.0–v1.18.5) could allow takeover and fund theft; update to v1.24.0.
Alby disclosed a critical flaw in Alby Hub, its self-hosted Lightning wallet, affecting versions v1.7.0 through v1.18.5 when the management interface is reachable from the internet. The flaw could let attackers take over a wallet and send its funds; one affected user has been reported so far, with no word on losses. Versions v1.19.0 and later contain the fix, and Alby advises updating to v1.24.0, binding port 8080 to localhost or firewalled sources, and changing unlock passwords on previously exposed hubs. Full technical details will be published later under responsible disclosure.
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Hackers drain $320M in Bitcoin from Liquid Network, claim they’re the good guys
Hackers withdrew roughly 4,000 BTC (about $320M) from the Liquid Network federation wallet backing the Blockstream-developed Bitcoin sidechain, claiming benign intent.
Blockstream said Sunday that around 4,000 BTC, roughly $320 million, was withdrawn from the federation wallet backing Liquid Network, a Bitcoin sidechain used by exchanges and financial institutions. The attackers publicly claimed they were 'the good guys'; no attribution or recovery details are provided. The theft affects infrastructure that backs custodial Bitcoin transfers for exchanges.
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Party’s over for scammers who went on spending spree after $240M bitcoin theft
AP report on scammers' spending spree after a $240 million bitcoin social engineering theft, as ringleader Malone Lam nears a plea agreement.
DataBreaches.net syndicates AP reporting on the $240 million bitcoin theft from a Washington, D.C. resident via social engineering calls impersonating Google and Gemini. Alleged ringleader Malone Lam, 22, faces a plea hearing; the scam network spent stolen funds on cars, jets, and mansions before FBI arrests. Crypto investment fraud complaints to the FBI rose nearly 50% in 2025.
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