California Man Sentenced to 78 Months for $250M Crypto Theft Ring Role

A U.S. federal court sentenced Marlon Ferro, a 20-year-old California man also known as “GothFerrari,” to 78 months in prison on Wednesday for his role in a nationwide social engineering conspiracy that stole over $250 million in cryptocurrency assets, according to a statement from the Department of Justice. Ferro was also ordered to serve three years of supervised release and to pay $2.5 million in restitution.

Defendant’s Role in the Scheme

U.S. Attorney Jeanine Ferris Pirro characterized Ferro as the “criminal enterprise’s instrument of last resort.” According to Pirro, “When his co-conspirators couldn’t deceive victims into handing over access to their cryptocurrency or hack their way into digital accounts, they turned to Ferro to break into homes and steal hardware wallets outright.”

The prosecutor noted that the scheme blended online fraud with burglary and drained victims of over $250 million worth of crypto assets between late 2023 and early 2025.

Investigation and Criminal Activities

A multi-year federal investigation found that members of the social engineering enterprise carried out a range of activities, including database hacking, target identification, fraudulent phone calls, money laundering, and residential burglary. The scheme generally targeted victims with large crypto holdings.

In February 2024, Ferro traveled to Texas and broke into a victim’s home to steal a hardware wallet containing approximately 100 BTC worth over $5 million at the time. He also helped launder the criminal proceeds through crypto exchanges, according to the DOJ statement.

In July 2024, Ferro broke into another residence in New Mexico in search of a hardware wallet. He was captured on the victim’s home surveillance camera and arrested in May 2025. Authorities found him in possession of two firearms and a fake identification document.

Guilty Plea and Sentencing

Ferro pleaded guilty in October 2025 before Judge Colleen Kollar-Kotelly to one count of conspiracy to participate in a racketeer-influenced and corrupt organization (RICO).

Pirro stated: “Today’s sentence sends a clear message: cryptocurrency fraud is not a victimless, consequence-free crime carried out safely behind a screen — it is serious criminal conduct that will lead to federal prison.”

Broader Crypto Crime Context

Crypto-related crime has been on the rise. Fraud losses hit a record $11.3 billion in 2025, according to FBI data, accounting for more than half of the $20.9 billion in total internet crime losses tracked by the FBI. Last month, officials announced that a global task force led by the FBI had arrested 276 suspects and disrupted nine scam centers tied to crypto schemes.