Crypto theft rings are increasingly moving beyond online scams into real-world violence, according to U.S. prosecutors and investigators.
Federal authorities say organized groups are now combining hacking, social engineering, burglary and physical intimidation to target cryptocurrency holders.
The warning comes as a California man known online as “GothFerrari” was sentenced to federal prison for his role in a sprawling crypto theft network tied to more than $250 million in stolen digital assets.
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DOJ sentences ‘GothFerrari’ in crypto theft case
On May 6, Marlon Ferro, 20, was sentenced to 78 months in prison after pleading guilty to participating in a racketeering conspiracy tied to a nationwide crypto theft operation, according to the U.S. Department of Justice.
Federal prosecutors said Ferro acted as the organization’s “instrument of last resort” when hackers and social engineers could not remotely access victims’ crypto holdings.
Instead, the group allegedly turned to physical burglaries targeting hardware wallets, offline storage devices that cannot be hacked remotely.
In February 2024, Ferro allegedly broke into a Texas home and stole a hardware wallet containing roughly 100 Bitcoin.
Authorities said stolen funds financed lavish spending sprees that included $500,000 nightclub tabs, private jets, exotic cars, luxury watches, Birkin bags and rental mansions in Miami, Los Angeles and the Hamptons.
One of the Hermès Birkin bags Ferro obtained for a co-conspirator’s girlfriend – Source: DOJ
“Cryptocurrency fraud is not a victimless, consequence-free crime carried out safely behind a screen,” U.S. Attorney Jeanine Ferris Pirro said.
The network stretched far beyond one burglar
Prosecutors say Ferro was only one member of a much larger criminal organization.
A December 2025 indictment described a multi-state RICO conspiracy that allegedly evolved from friendships formed through online gaming platforms. The network included hackers, callers, database thieves, money launderers and residential burglars.
The indictment also detailed a separate theft involving more than 4,100 Bitcoin, worth $263 million at the time, stolen from a victim in Washington, DC.
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Investigators said the group relied on stolen databases, iCloud tracking, fake identities and luxury rental homes to support operations.
Authorities also linked the case to FBI raids, Dubai arrests and attempts to destroy digital evidence after arrests were made.