Evan Tangeman, a 22-year-old from Newport Beach, California, was reportedly sentenced on April 24, 2026 to 70 months in federal prison for his role in a crypto scam ring that stole more than $263 million in cryptocurrency, according to the U.S. Department of Justice.
The sentencing was handed down by Judge Colleen Kollar-Kotelly in U.S. District Court in Washington, D.C. Tangeman also faces three years of supervised release following his prison term.
Tangeman pleaded guilty on December 8, 2025 to participating in a RICO conspiracy and admitted to laundering at least $3.5 million for the criminal enterprise. His plea was the ninth in the case, which DOJ described as a multi-state operation that grew out of online gaming friendships.
A Single Theft of Over 4,100 Bitcoin
The scale of the underlying scheme dwarfs Tangeman’s individual role. According to an earlier DOJ plea release, the indictment alleges that on August 18, 2024, the group fraudulently obtained over 4,100 Bitcoin from a single victim in the District of Columbia.
That haul was valued at $263 million at the time of the theft. By December 2025, DOJ noted the same Bitcoin was worth more than $368 million, reflecting the asset’s price appreciation. At recent benchmark levels near $77,869 per coin, Bitcoin continues to trade well above its August 2024 price point.
Deputy Attorney General Jeanine Ferris Pirro characterized the group’s spending habits bluntly in the DOJ announcement.
“They stole millions, spent it on half-million-dollar nightclub tabs, Lamborghinis, and Rolexes.”
— Jeanine Ferris Pirro, Deputy Attorney General
The investigation involved the FBI’s Washington Field Office and IRS-Criminal Investigation, with additional support from FBI offices in Los Angeles and Miami. The multi-agency coordination reflects the geographic spread of the enterprise across several states.
What the Case Signals for Crypto Crime Enforcement
The sentencing arrives as U.S. authorities continue to pursue crypto-related fraud at scale. The RICO conspiracy charge, typically reserved for organized crime prosecutions, signals that federal prosecutors are treating coordinated crypto theft rings with the same tools used against traditional criminal enterprises.
For an industry still working to establish institutional credibility, cases like this cut both ways. The theft itself, one of the largest social-engineering attacks on a single crypto holder, underscores ongoing custody and security risks. The U.S. government’s own growing Bitcoin holdings make enforcement against crypto theft a matter of protecting an asset class that now sits on federal balance sheets.
The prosecution also fits a broader pattern of stepped-up regulatory and enforcement activity. Recent months have seen the EU impose new crypto sanctions on Russian and Belarusian providers, while sustained ETF inflows suggest institutional investors are betting that tighter oversight will strengthen rather than undermine crypto markets.
Tangeman’s 70-month sentence, while significant, covers only his admitted $3.5 million in laundering. Other defendants in the case have yet to be sentenced, and the full scope of restitution remains unresolved. The case is being handled by the U.S. Attorney’s Office for the District of Columbia.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
