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▲ Cryptocurrency, Kidnapping, Cryptocurrency Crime/AI-generated image
A 20-year-old man involved in a $250 million theft and social engineering crime organization targeting cryptocurrency holders across the United States has been sentenced to 78 months in prison. The incident involved home invasion to steal hardware wallets after failing to access victims' assets through online fraud, raising growing concerns that cryptocurrency crimes are expanding beyond digital hacking to physical threats.
Criptopotato reported on May 10 (local time), citing a U.S. Department of Justice announcement, that Marlon Ferro, from Santa Ana, California, was sentenced to 78 months in prison for his involvement in a large-scale cryptocurrency theft and social engineering crime organization. Ferro, who used the alias GothFerrari, pleaded guilty in October 2025 to conspiracy to participate in a racketeering enterprise.
The court also ordered Ferro to serve three years of supervised release and pay $2.5 million in restitution, in addition to the prison sentence. Authorities identified a multi-year criminal enterprise involving members in various U.S. states and overseas from late 2023 to early 2025. The organization targeted victims believed to hold large amounts of cryptocurrency by combining database hacking, fraudulent calls, money laundering, and home invasions.
According to prosecutors, Ferro was deployed when victims' assets were stored in hardware wallets that could not be accessed remotely. In February 2024, he traveled to Winnsboro, broke into a victim's home, and stole a hardware wallet containing approximately 100 BTC, then valued at over $5 million. Authorities stated that Ferro subsequently laundered the funds through a cryptocurrency exchange.
In July 2024, he traveled to New Mexico, surveilled a target residence for several days, then broke in by smashing a window with a brick. The objective was to find a hardware wallet. Authorities explained that this intrusion was captured on the victim's surveillance camera. According to court documents, Ferro used a fake ID to open accounts on geographically restricted payment platforms, helping organization members spend stolen funds at retail stores and nightclubs.
Ferro was also investigated for purchasing over $255,000 worth of designer clothing for his accomplices. He was also involved in converting cryptocurrency to cash to cover the legal fees of an arrested organization leader and reportedly arranged the purchase and delivery of an Hermes Birkin bag for the accomplice's girlfriend. When Ferro was arrested in May 2025, authorities recovered two firearms and fake identification documents.
This incident comes amid growing concerns in the cryptocurrency industry about so-called 'wrench attacks.' A wrench attack refers to a crime where victims are physically threatened and coerced into surrendering access to their digital assets. CryptoPotato reported that blockchain security firm CertiK reported a 75% increase in cryptocurrency theft incidents involving physical threats in 2025. Binance introduced a feature this week allowing users to lock withdrawals for up to seven days, which was presented as a measure to reduce risks associated with physical coercion.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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