Plea deal negotiations are still ongoing in the United States case against Malone Lam, a Singaporean accused of leading a large crypto theft ring that prosecutors say stole more than $260 million worth of crypto from victims around the world. Based on current prices, their value now exceeds $350 million.
At a status hearing on Wednesday, Dec. 17, in a federal court in Washington, DC, Lam’s lawyer told the judge that discussions with the US government are continuing and that both sides are working toward a possible resolution.
Talks With Prosecutors Still Active
Lam’s defense lawyer, John Patrick Pierce, said in court that he remains in active discussions with federal prosecutors and believes there is still a chance to resolve the case without going to trial. “We do want to give best efforts at a resolution, and I believe Mr. Hart and I can do that in good faith,” Pierce told the court. He was referring to Assistant United States Attorney William Hart, who has recently taken over the case.
A motion filed one day before the hearing confirmed that Hart replaced Assistant United States Attorney Kevin Rosenberg. Rosenberg had been involved in earlier hearings and plea discussions, including those linked to Lam’s alleged co-conspirators. While the government made a new plea offer to Lam in mid-November, the terms of that offer were not disclosed in court. Both the defense and prosecutors agreed to return to court on Jan. 12, 2026, at 9:30 a.m. Washington time, or 10:30 p.m. in Singapore, to provide an update on the status of plea deal talks.
New Defendants Are Charged
Since Lam’s last status hearing in November, the case has grown significantly. The court has unsealed a Second Superseding Indictment, which adds three new defendants and brings the total number of individuals charged in the case to 17.
The US Department of Justice has charged Nicholas Dellecave, Mustafa Ibrahim, and Danish Zulfiqar with conspiracy charges tied to organized criminal activity. Prosecutors say their alleged roles included database hacking and laundering stolen crypto.
Dellecave was arrested in Miami on Dec. 3, 2025. Zulfiqar and Ibrahim were recently arrested in Dubai on related charges, according to the Justice Department. The new indictment also highlights what prosecutors describe as the group’s most daring theft. According to court filings, Lam, Danish Zulfiqar, and others allegedly worked together to steal more than 4,100 bitcoins from a single victim in Washington in August 2024.
How the Alleged Scheme Worked
According to prosecutors, Lam and some of his co-defendants formed what they describe as a “social engineering” group in late 2023. Members of the group are accused of identifying people who held large amounts of cryptocurrency. They then allegedly pretended to be support agents from Google or crypto exchanges to trick victims into handing over passwords, private keys, and recovery phrases.
Using this access, prosecutors say the group drained victims’ accounts, moved the stolen crypto through offshore exchanges, and eventually converted it into cash. Authorities claim the group spent heavily on private jets, luxury homes and exotic cars, with over $4 million spent at nightclubs in Los Angeles.
Nine of Lam’s alleged co-conspirators have already pleaded guilty, including Evan Tangeman, a 22-year-old from Newport Beach, California. Tangeman admitted to helping launder at least $3.5 million for the group. In November, Kunal Mehta, one of his supposed co-conspirators, admitted to money laundering and conspiracy charges. Mehta is accused of running the money-laundering part of the operation. Another defendant, Ethan Yarally, has also signalled that his case may be resolved without a trial. Prosecutors described Yarally as a “caller” who directly contacted victims and convinced them to hand over account access.
What Happens Next
Judge Colleen Kollar-Kotelly has said she expects greater clarity in the coming weeks on whether the case will be settled or go to trial.
With plea talks ongoing, multiple defendants cooperating, and a massive body of evidence under review, the next court hearing in January could be a turning point.
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Source: https://www.cryptonewsz.com/us-plea-deal-talks-malone-lam-crypto-scam-case/
