Federal prosecutors said Ferro burglarized homes to steal hardware wallets when online crypto scams failed to access victims’ funds.
The U.S. Department of Justice announced that Marlon Ferro, 20, of Santa Ana, was 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 engage in a racketeering enterprise.
Crypto heist operation
In addition to the prison term, the court ordered him to serve three years of supervised release and pay $2.5 million in restitution. According to court filings, federal investigators discovered a multi-year operation active between late 2023 and early 2025 that involved members in several U.S. states and abroad.
The group allegedly carried out database hacks, fraudulent phone calls, money laundering and residential burglaries targeting people suspected of holding large amounts of cryptocurrency. Prosecutors said Ferro was arrested when the victims stored their assets in hardware wallets that were inaccessible remotely.
In an incident in February 2024, Ferro allegedly traveled to Winnsboro and broke into a victim’s home, stealing a hardware wallet containing approximately 100 BTC worth over $5 million at the time. Authorities said he then laundered the funds through crypto exchanges. In another case, in July 2024, Ferro allegedly traveled to New Mexico and monitored a target residence for several days before breaking a window with a brick and entering the home in search of a hardware wallet.
Investigators said the burglary 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, which allowed group members to spend the stolen funds at retail stores and nightclubs. Authorities said he purchased more than $255,000 worth of designer clothing for co-conspirators and helped an arrested conspiracy ringleader by converting crypto to cash to pay legal fees.
Prosecutors also said Ferro arranged the purchase and shipping of Hermès Birkin bags for the associate’s girlfriend. When Ferro was arrested in May 2025, law enforcement recovered two guns and a fake ID.
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Growing real-world threats
The case comes as the industry faces growing concerns over so-called “keystrokes,” where victims are threatened with access to their digital assets. Earlier this year, blockchain security firm CertiK reported a 75% increase in crypto thefts involving physical threats in 2025.
Amid these concerns, Binance this week introduced a feature allowing users to lock withdrawals for up to seven days, designed to help reduce risks related to physical coercion.
