This week, federal prosecutors announced the arrest of two individuals accused of stealing $230 million in cryptocurrency. The stolen funds were allegedly used to finance a lavish lifestyle.

What Happened: Malone Lam, 20, and Jeandiel Serrano, 21, are believed to have stolen the cryptocurrency from a person in Washington, D.C., in August.

According to the U.S. Attorney’s Office for the District of Columbia, the stolen funds were laundered through various exchanges and mixing services, reports The New York Times.

The suspects reportedly concealed their theft by distributing the money across several cryptocurrency exchanges and mixing services, before embarking on a spending spree.

Lam, a Singaporean citizen who used aliases including “Anne Hathaway,” and Serrano, known as “VersaceGod,” were apprehended by the F.B.I. on Wednesday.

Also Read: North Korean Hackers Swiped $600 Million Worth Of Crypto In 2023, Expected To Carry Out More Attacks

An indictment was unsealed last week charging Lam and Serrano with conspiracy to commit wire fraud and money laundering. The indictment did not disclose how the two men gained access to the victim’s funds, only stating that they had “engaged in digital communications” with the victim, reports the outlet.

Lam’s lawyer Diego Weiner declared his intention to “vigorously defend” his client and requested that Lam be “presumed innocent” until proven guilty. Serrano’s lawyer could not be immediately reached for comment.

The U.S. attorney’s office has not yet responded to requests for more details regarding the case. The investigation is ongoing.

Why It Matters: This case underscores the growing concern over the security of digital assets. As cryptocurrency becomes more mainstream, it has also become a target for cybercriminals.

This incident serves as a stark reminder of the risks associated with cryptocurrency transactions and the need for enhanced security measures in the digital currency space.

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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.