A 22-year-old California man has been sentenced to nearly six years in prison for laundering millions from a $263 million crypto fraud scheme.
Launderer Behind Multi-Million Crypto Operation
Evan Tangeman, 22, of Newport Beach, was sentenced to 70 months in prison after pleading guilty to a racketeering scheme that stole over $263 million in cryptocurrency. The operation ran from October 2023 to May 2025 and involved a loose network of young people connected online.
Tangeman admitted to laundering at least $3.5 million, converting stolen crypto into cash, and helping hide where the funds came from. His role helped other members cash out and spend the money.
Luxury Lifestyle from Stolen Crypto
Authorities said the group used stolen funds to live lavishly, spending on $500,000 nightclub nights, luxury watches, and exotic cars.
Tangeman himself played a key role in facilitating this lifestyle. He helped secure rental mansions in Los Angeles, Miami, and the Hamptons, often priced between $40,000 and $80,000 per month, using fake identities to avoid detection. Some of the homes were worth up to $9 million.
In return for his services, Tangeman was rewarded with luxury cars. Police seized several from him, including a Rolls-Royce Ghost and a Porsche GT3 RS.
Role in Cover-Up Efforts
Beyond laundering funds, prosecutors said Tangeman took steps to obstruct the investigation. After some members were arrested, he allegedly told others to destroy digital evidence, something authorities see as a clear sign of guilt.
US Attorney Jeanine Pirro described the operation as driven by “greed so extreme it borders on the cartoonish,” pointing to the group’s reckless spending.
This criminal enterprise was built on greed so brazen it borders on the cartoonish. They stole millions, spent it on half-million-dollar nightclub tabs, Lamborghinis, and Rolexes. But Evan Tangeman didn’t just launder the money that fueled that lifestyle. When his co-conspirators… https://t.co/upoebsUxrl
— US Attorney Pirro (@USAttyPirro) April 24, 2026
Expanding Network of Young Cybercriminals
Investigators said the network was made up mostly of young people, many under 20, operating across several U.S. states and abroad. Their roles included hacking, social engineering, and even stealing hardware crypto wallets.
Tangeman’s guilty plea is the ninth conviction in the case, showing authorities are still working to break up the wider network.
Meanwhile, the case has sparked debate in the crypto community, with some questioning whether a 70-month sentence matches the scale of the $263 million fraud. Others see it as a sign of tougher penalties for crypto crimes.
As enforcement ramps up, the case highlights a key point. While crypto allows fast, borderless transactions, it also leaves trails that law enforcement is getting better at tracking.
Related: Robert Dunlap Sentenced to 23 Years in $20 Million Crypto Fraud Case