A man from Newport Beach has been sentenced to federal prison for his role in laundering money for a group of young con artists responsible for a massive cryptocurrency theft estimated at $263 million. This criminal enterprise utilized the stolen funds to indulge in a lavish lifestyle, acquiring luxury cars, renting exquisite mansions, and spending extravagant amounts at nightclubs.
Last week, U.S. District Judge Colleen Kollar-Kotelly sentenced 22-year-old Evan Tangeman to 70 months in prison after he entered a guilty plea in December. In addition to his prison time, Tangeman has been ordered to serve three years of supervised release. He confessed to laundering at least $3.5 million for the group, which targeted investors across the United States.
Federal authorities described Tangeman as one of nine individuals involved in what they termed a “social engineering crime enterprise.” This group included hackers, scammers, burglars, and money launderers who manipulated victims into revealing personal information such as passwords and PINs.
The criminal operation impersonated security technicians and employees from well-known cryptocurrency exchanges like Coinbase and Gemini, successfully duping victims. A close associate referred to Tangeman and his cohorts as the “crypto kids,” hinting at their youth and audacious methods.
“This criminal enterprise was built on greed so brazen it borders on cartoonish,” remarked Jeanine Pirro, U.S. attorney for the District of Columbia. She emphasized the stark contrast between the perpetrators’ extravagant spending habits—such as lavish nightclub tabs and luxury purchases—and their criminal activities.
The group reportedly emerged from online gaming platforms, with members residing in various locations, including California, Connecticut, New York, and Florida. Their criminal activities spanned from October 2023 to at least May 2025.
Evidence also surfaced earlier this year when a 17-year-old member of the group testified against Eric Halem, a former Los Angeles police officer convicted of robbing $350,000 in cryptocurrency from the teen. This testimony unveiled a broader subculture surrounding newly created cryptocurrency wealth, which Tangeman was intricately a part of, facilitating luxury acquisitions for his peers.
Federal officials indicated that many members of the group were unemployed young men, often under the age of 20, who sought to avoid attracting attention from authorities while renting luxury homes priced between $40,000 to $80,000 per month. The homes were valued up to nearly $9 million, including properties in exclusive areas like the Hamptons and Miami.
The funds that Tangeman laundered contributed to a lifestyle marked by opulence: hundreds of thousands were spent at nightclubs, and luxury handbags worth tens of thousands were given away as party favors. The group indulged in high-end clothing and luxury watches, with total expenses possibly reaching up to $500,000. Their fleet of luxury vehicles included cars valued from $100,000 to nearly $4 million.
It was reported that Tangeman benefited significantly from his involvement, with at least one transaction involving the purchase of a wide-body Lamborghini Urus. During a search warrant execution at his home, federal agents seized a 2022 Rolls-Royce Ghost valued over $300,000 and a Porsche GT3 RS.
As the investigation deepened and the scale of their fraudulent activities became clearer, Tangeman was implicated in directing a co-defendant to destroy digital evidence tied to the enterprise, highlighting the group’s effort to evade justice and the lengths they would go to in perpetuating their criminal activities.
