Federal prosecutors said Ferro burglarized homes to steal hardware wallets when online cryptocurrency scams failed to access victims’ funds.
The US Department of Justice announced that 20-year-old Marlon Ferro of Santa Ana has been sentenced to 78 months in prison for his role in a large-scale cryptocurrency theft and social engineering conspiracy that stole more than $250 million from victims across the country.
Ferro, who also used the alias “GothFerrari,” pleaded guilty in October 2025 to conspiracy to participate in a racketeering enterprise.
Crypto theft
In addition to the prison sentence, the court commander To serve three years of supervised release and pay $2.5 million in restitution. According to court filings, federal investigators uncovered a multi-year operation active between late 2023 and early 2025 that involved members from several U.S. states and abroad.
The group allegedly carried out database hacks, fraudulent phone calls, money laundering, and residential burglaries targeting people believed to possess large amounts of cryptocurrency. Prosecutors said Vero was brought in when victims stored their assets in hardware wallets that could not be accessed remotely.
In one incident in February 2024, Ferro allegedly traveled to Waynesboro and broke into a victim’s home, stealing a hardware wallet containing approximately 100 bitcoins worth more than $5 million at the time. He later laundered the money through cryptocurrency exchanges, authorities said. In another case in July 2024, Ferro allegedly traveled to New Mexico and surveilled a targeted residence for several days before bricking out a window and entering the home in search of a hardware wallet.
Investigators said the robbery was captured on the victim’s surveillance cameras. Court documents also said Ferro helped launder stolen cryptocurrencies by using fraudulent identity documents to open accounts on geo-blocked payment platforms, allowing group members to spend the stolen funds at retail stores and nightclubs. Authorities alleged that he purchased more than $255,000 worth of designer clothing for co-conspirators and assisted the arrested conspiracy leader by converting cryptocurrencies into cash to pay legal fees.
Prosecutors also said Ferro arranged the purchase and shipping of Hermès Birkin bags for the accomplice’s girlfriend. When Ferro was arrested in May 2025, law enforcement found two firearms and a forged identity document.
You may also like:
Increasing threats in the real world
This issue comes as industry Faces Growing concerns about so-called “bait attacks”, where victims are threatened to hand over access to their digital assets. Earlier this year, blockchain security firm CertiK I mentioned 75% increase in cryptocurrency thefts involving physical threats in 2025.
Amid these concerns, Binance this week foot It is a feature that allows users to lock withdrawals for up to seven days, and is designed to help reduce the risks associated with physical coercion.
