California Man Sentenced to 70 Months for Role in $263M Bitcoin Laundering Scheme

A 22-year-old California man has been sentenced to 70 months in federal prison for his involvement in laundering millions of dollars tied to a massive $263 million cryptocurrency theft. According to the U.S. Attorney’s Office for the District of Columbia, Evan Tangeman of Newport Beach played a key role in moving stolen Bitcoin and helping a criminal network conceal its profits.

Tangeman admitted to laundering at least $3.5 million for a multi-state group responsible for stealing over 4,100 Bitcoin from a single victim. The operation, which ran from October 2023 to May 2025, reportedly originated from connections formed through online gaming platforms. The group included hackers, organizers, social engineers, and even individuals who carried out physical burglaries targeting cryptocurrency hardware wallets.

Using aliases such as “E,” “Tate,” and “Evan|Exchanger,” Tangeman converted stolen cryptocurrency into fiat currency, enabling the group to spend freely. He also worked with real estate agents in Los Angeles to secure luxury properties for members of the operation. Many of those involved were reportedly unemployed individuals under 20 years old, yet they lived in homes valued between $4 million and $9 million.

The group’s spending habits were extravagant, with funds used for luxury items and experiences, including nightclub expenses reaching up to $500,000 in a single night, high-end Rolex watches worth up to $500,000, and exotic cars priced as high as $3.8 million. Tangeman himself received a customized Lamborghini Urus, while authorities seized additional vehicles from his residence, including a Rolls-Royce Ghost and a Porsche GT3 RS.

Tangeman pleaded guilty to RICO conspiracy in December 2025, marking the ninth guilty plea in the ongoing case. Authorities revealed that he also instructed an associate to destroy digital evidence following earlier arrests in the investigation. Federal prosecutors continue to pursue additional suspects linked to the crypto laundering network, signaling ongoing efforts to crack down on large-scale cryptocurrency fraud and cybercrime.