Evan Tangeman, a 22-year-old from California, has been sentenced to 70 months in prison for helping a crypto theft group launder stolen funds. The U.S. Department of Justice said he admitted to laundering at least $3.5 million for members of the operation, while the broader group stole about $263 million from victims through social engineering scams, burglary, and other coordinated attacks.
Tangeman pleaded guilty in December 2025. In addition to the prison sentence, he was ordered to serve three years of supervised release after custody. Prosecutors said his conduct was not limited to moving illicit proceeds for the group.
Prosecutors say stolen crypto funded luxury spending
According to the DOJ, members of the group used stolen crypto to pay for a lavish lifestyle. Prosecutors said the money went to real estate, luxury cars, Rolex watches, and large nightclub bills. U.S. Attorney Jeanine Pirro described the group as driven by extreme greed, saying they stole millions and spent the proceeds on half-million-dollar nightclub tabs, Lamborghinis, and Rolexes.
Prosecutors also said Tangeman tried to destroy evidence after other members of the group had been arrested. Pirro said that conduct showed consciousness of guilt, and the court treated it seriously. The case record, as described by the government, placed him beyond the role of a simple money mover.
Sentence lands as crypto crime losses mount in 2026
The sentencing comes as losses from crypto scams and hacks reached $482 million in the first quarter of 2026. Authorities have warned that criminal groups are still targeting crypto users through online fraud as well as physical attacks.
France has also reported an increase in violent incidents involving crypto holders. Telegram co-founder Pavel Durov said there were 41 kidnappings of French crypto holders in Q1 2026 alone. The Tangeman sentence arrives as law enforcement faces a broader surge in crypto-related crime cases.