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Federal prosecutors said Ferro burglarized homes to steal hardware wallets when online crypto 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 Burglary Operation
In addition to the prison sentence, the court ordered him 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 across several US states and abroad.
The group allegedly carried out database hacks, fraudulent phone calls, money laundering, and residential burglaries that targeted people believed to hold large amounts of cryptocurrency. Prosecutors said Ferro 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 Winnsboro and broke into a victim’s home, stealing a hardware wallet that contained about 100 BTC worth more than $5 million at the time. Authorities said he later laundered the funds through crypto exchanges. In another case in July 2024, Ferro allegedly flew to New Mexico and monitored a target residence for several days before smashing 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 stated that Ferro helped launder stolen crypto by using fraudulent identification documents to open accounts on geo-blocked payment platforms, which allowed members of the group to spend stolen funds at retail stores and nightclubs. Authorities alleged he purchased more than $255,000 worth of designer clothing for co-conspirators and assisted an arrested conspiracy leader by converting crypto into cash to pay legal fees.
Prosecutors also said Ferro arranged the purchase and shipment of Hermès Birkin bags for the associate’s girlfriend. When Ferro was arrested in May 2025, law enforcement recovered two firearms and a fake identification document.
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Growing Real-World Threats
The case comes as the industry faces growing concerns over so-called “wrench attacks,” where victims are threatened into handing over 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 those concerns, Binance this week introduced a feature allowing users to lock withdrawals for up to seven days, which is designed to help reduce risks tied to physical coercion.
