Crypto thief gets 78 months as $250M wallet ring collapses

A federal court in Washington, D.C., sentenced Marlon Ferro, 20, of Santa Ana, California, to 78 months in prison over his role in a social engineering group that stole well over $250 million in crypto from U.S. victims. 

The Justice Department said the court also ordered three years of supervised release and $2.5 million in restitution.

Ferro, also known as “GothFerrari,” pleaded guilty on Oct. 17, 2025, to one count of conspiracy to participate in a Racketeer Influenced and Corrupt Organization. U.S. Attorney Jeanine Ferris Pirro said Ferro acted as the group’s “instrument of last resort,” a phrase that described his alleged role when online tricks failed.

Online fraud turned into home break-ins

Prosecutors said the group used several roles to find and steal from crypto holders. Those roles included database hacking, target selection, fake calls, laundering, and burglary. The group operated from late 2023 to early 2025 and had members in California, Connecticut, New York, Florida, and abroad.

Court records said Ferro traveled to Texas in February 2024 and broke into a victim’s home to steal a hardware wallet holding about 100 BTC, worth more than $5 million at the time. 

Prosecutors also said he broke into a New Mexico home in July 2024 while looking for another hardware wallet. Surveillance footage later helped identify him, according to prosecutors.

Crypto theft cases widen

The case came as U.S. agencies keep tracking larger crypto fraud networks. Related crypto.news coverage reported that an FBI-led global operation arrested 276 suspects and disrupted nine scam centers tied to crypto investment fraud. That operation involved law enforcement in Dubai, Thailand, and China.

Another crypto.news report in March said the FBI and Thai police froze about $580 million in crypto and seized around 8,000 mobile phones in a cross-border fraud raid. The report said such devices are often used to run many scam conversations and move stolen funds through wallets and exchanges.

FBI data shows wider losses

The FBI’s 2025 Internet Crime Report said crypto-linked complaints caused more than $11 billion in reported losses. The agency received 181,565 crypto-related complaints. Overall cyber-enabled crimes cost Americans nearly $21 billion, according to the FBI. The figures show why federal investigators continue to focus on social engineering and wallet theft.

Pirro said the case showed crypto fraud was “not a victimless” crime. Prosecutors said the stolen funds supported luxury spending, including cars, watches, private jet rentals, and expensive homes. The sentencing also follows an April case in which Evan Tangeman received 70 months for laundering money from a related social engineering enterprise.