A 22-year-old Newport Beach man was sentenced to 70 months in federal prison for his role in a sophisticated criminal enterprise that stole over $263 million in cryptocurrency through social engineering schemes.
"This criminal enterprise was built on greed so brazen it borders on the cartoonish," U.S. Attorney Jeanine Pirro said. "They stole millions, spent it on half-million-dollar nightclub tabs, Lamborghinis, and Rolexes. But Evan Tangeman didn’t just launder the money that fueled that lifestyle. When his co-conspirators were arrested, he moved to destroy the evidence."
Evan Tangeman, also known as “E” and “Tate,” pleaded guilty to a RICO conspiracy charge on Dec. 8, 2025. He was a key money launderer for the group, which operated from October 2023 to May 2025 and consisted of individuals who met through online video games. The organization's activities included hacking, identifying targets, and residential burglaries to steal hardware crypto wallets. Tangeman laundered at least $3.5 million, converting the stolen crypto into cash and renting luxury mansions for the group to evade law enforcement.
The sentencing of Tangeman, the ninth member of the ring to accept a plea deal, underscores a significant victory for federal investigators in cracking down on large-scale crypto crime. The investigation, a joint effort by the U.S. Attorney’s Office, the FBI, and the IRS, signals a strengthening of regulatory enforcement in the digital asset space, a move that could deter illicit activities and reinforce long-term investor trust in the ecosystem. The case also serves as a stark reminder of the persistent threat of social engineering attacks targeting cryptocurrency holders.
This article is for informational purposes only and does not constitute investment advice.
