A 22-year-old California man will spend 70 months in federal prison for helping launder money tied to a massive cryptocurrency theft operation. Prosecutors said the criminal group stole more than $263 million and used the funds for luxury homes, exotic cars, watches, and expensive nightlife.
Evan Tangeman of Newport Beach received the sentence in U.S. District Court for the District of Columbia. He had pleaded guilty to taking part in a RICO conspiracy.
Prosecutors Say Tangeman Helped Move Millions
According to federal prosecutors, Tangeman used several online names, including “E,” “Tate,” and “Evan|Exchanger.” Authorities said he helped launder at least $3.5 million for a criminal network operating across several states.
The group allegedly targeted cryptocurrency holders through social engineering, hacking, and other schemes. Prosecutors said the operation started no later than October 2023 and continued until at least May 2025.
The case shows how crypto crime has moved beyond basic online scams. Today, some theft groups use organized tactics that include:
- Cyberattacks
- Identity impersonation
- Money laundering
- Physical threats
- Break-ins targeting hardware wallets
Stolen Crypto Funded a Luxury Lifestyle
Federal officials said the stolen crypto was converted into cash and spent on an extravagant lifestyle. Members and associates allegedly paid for luxury rentals in Los Angeles, Miami, and the Hamptons.
They also spent huge amounts on nightclub services, private jets, exotic vehicles, and watches. Some nightclub bills reached up to $500,000 in one evening. Luxury watches were also valued at more than $500,000.
Prosecutors said Tangeman helped arrange mansions for other members of the group. He also allegedly received a widebody Lamborghini Urus as payment. Agents later seized a Rolls-Royce Ghost and a Porsche GT3 RS from his home.
Crypto Crime Crackdown Continues
Tangeman’s plea was the ninth guilty plea in the investigation. Judge Colleen Kollar-Kotelly also ordered him to serve three years of supervised release.
Prosecutors said Tangeman told another defendant to destroy digital devices after arrests began. Authorities viewed that as proof he knew the group was under serious investigation.
The sentencing highlights a growing federal crackdown on cryptocurrency laundering networks. U.S. authorities are now treating many digital asset crimes as organized financial crime, not just isolated online fraud.
