Key Takeaways
- • Evan Tangeman, 22, sentenced to 70 months in federal prison for laundering at least $3.5 million in cryptocurrency stolen by a multi-state criminal enterprise that targeted high-value crypto owners through social engineering schemes.
- • $263 million cryptocurrency theft operation dismantled: The "Social Engineering Enterprise" stole approximately $263 million from victims between October 2023 and May 2025 using elaborate schemes targeting hardware virtual currency wallets across California, Connecticut, Florida, New York, and internationally.
- • Criminal organization displayed extreme financial excess: Members spent hundreds of thousands on half-million-dollar nightclub tabs, Lamborghinis, Rolexes, and luxury handbags while renting and purchasing high-end properties in Los Angeles, the Hamptons, and Miami using false identities.
- • Evidence destruction and obstruction charges elevated sentencing: Tangeman ordered gang members to destroy devices and conceal activity after co-conspirators were arrested in 2024, demonstrating consciousness of guilt and resulting in three years of supervised release in addition to prison time.
- • Broader enforcement pattern: Daren Li, fugitive in separate $73 million cryptocurrency scam, sentenced in absentia to 20 years after pleading guilty to money laundering conspiracy; Li fled by cutting off electronic monitoring device in December 2025, highlighting international scope of crypto crime enforcement.
Summary
A 22-year-old Newport Beach, California resident, Evan Tangeman, was sentenced to 70 months in federal prison for his role as a money launderer in a sophisticated cryptocurrency theft and laundering operation, U.S. Attorney Jeanine Pirro announced. Tangeman pleaded guilty in December 2025 to RICO conspiracy charges and admitted to laundering at least $3.5 million on behalf of a multi-state criminal enterprise known as the "Social Engineering Enterprise."
The criminal organization, which operated between October 2023 and May 2025, stole approximately $263 million in cryptocurrency from victims through elaborate social engineering schemes targeting holders of hardware virtual currency wallets. The enterprise comprised members across California, Connecticut, Florida, New York, and abroad who had initially met through online video games. The organization's structure included database hackers, target identifiers, callers, residential burglars, and money launderers like Tangeman. Operating under aliases including "E," "Tate," and "Evan|Exchanger," Tangeman was instrumental in concealing the proceeds through property purchases and financial transactions using fake identities.
The scale of the criminals' spending reflected extraordinary brazenness. Members financed half-million-dollar nightclub tabs, purchased luxury vehicles including Lamborghinis, acquired high-end watches and Rolexes, and rented or purchased luxury residences in Los Angeles, the Hamptons, and Miami. Tangeman's sentence was notably influenced by his conduct following the 2024 arrests of co-conspirators—he ordered gang members to destroy electronic devices and take other measures to obstruct the investigation, demonstrating what prosecutors characterized as consciousness of guilt.
U.S. District Court Judge Colleen Kollar-Kotelly imposed three years of supervised release in addition to the 70-month prison term. Tangeman is the ninth defendant to plead guilty in connection with the Social Engineering Enterprise investigation. The case reflects broader U.S. law enforcement focus on cryptocurrency crime. In a separate matter, Daren Li, a dual Chinese and St. Kitts and Nevis national, was sentenced in absentia to 20 years—the statutory maximum—for laundering over $73 million stolen from American victims through an international cryptocurrency investment scam operated from Cambodia. Li became a fugitive in December 2025 after cutting off his electronic monitoring device.
The criminal organization, which operated between October 2023 and May 2025, stole approximately $263 million in cryptocurrency from victims through elaborate social engineering schemes targeting holders of hardware virtual currency wallets. The enterprise comprised members across California, Connecticut, Florida, New York, and abroad who had initially met through online video games. The organization's structure included database hackers, target identifiers, callers, residential burglars, and money launderers like Tangeman. Operating under aliases including "E," "Tate," and "Evan|Exchanger," Tangeman was instrumental in concealing the proceeds through property purchases and financial transactions using fake identities.
The scale of the criminals' spending reflected extraordinary brazenness. Members financed half-million-dollar nightclub tabs, purchased luxury vehicles including Lamborghinis, acquired high-end watches and Rolexes, and rented or purchased luxury residences in Los Angeles, the Hamptons, and Miami. Tangeman's sentence was notably influenced by his conduct following the 2024 arrests of co-conspirators—he ordered gang members to destroy electronic devices and take other measures to obstruct the investigation, demonstrating what prosecutors characterized as consciousness of guilt.
U.S. District Court Judge Colleen Kollar-Kotelly imposed three years of supervised release in addition to the 70-month prison term. Tangeman is the ninth defendant to plead guilty in connection with the Social Engineering Enterprise investigation. The case reflects broader U.S. law enforcement focus on cryptocurrency crime. In a separate matter, Daren Li, a dual Chinese and St. Kitts and Nevis national, was sentenced in absentia to 20 years—the statutory maximum—for laundering over $73 million stolen from American victims through an international cryptocurrency investment scam operated from Cambodia. Li became a fugitive in December 2025 after cutting off his electronic monitoring device.
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