$240 million bitcoin theft leads to arrests; whitehat hackers return 3,400 BTC to Liquid Network after stealing 6,800 units
US authorities are prosecuting scammers who stole over $240 million in bitcoin while Australian regulators canceled registrations for 45 high-risk crypto businesses. Meanwhile, self-proclaimed whitehat hackers returned approximately 91% of the bitcoins stolen from the Liquid Network last week.
FBI agents arrested Malone Lam and 16 others on August 2024 charges involving social engineering. The group stole more than $240 million in bitcoin through a sophisticated scam targeting a resident in Washington, D.C. After the crime, the suspects celebrated by purchasing sports cars, flying on private jets, and renting mansions in Miami and the Hamptons. Lam spent over $569,000 at a night club in Los Angeles during the week-long bender. Lam, an eighth-grade dropout from Singapore, faces a plea agreement hearing set for Tuesday. Complaints of cryptocurrency investment fraud to the FBI rose by nearly 50% in 2025 following administrative decisions under previous administrations. In a separate incident, the Liquid Network reported 6,800 bitcoin were stolen from their federation due to a security breach. Whitehat hackers subsequently returned 3,400 BTC to the original address. Alex Thorn, head of research at Galaxy Digital Inc., stated in a post that the attackers kept roughly $47 million out of the total loss value. The liquid network operator interrupted all new transactions while investigators worked to restore normal activity. AUSTRAC, Australia's financial intelligence regulator, canceled or suspended registrations for 45 crypto and remittance providers over the last year. These actions targeted companies deemed inactive, insolvent, or lacking capacity to operate. The bureau noted that some businesses were exploited by organized investment scams.
