Malone Lam, 22, admits to $240M bitcoin heist

An eighth-grade dropout just admitted to one of the biggest bitcoin thefts in American history. Malone Lam came to the U.S. from Singapore. He pleaded guilty Tuesday to conning a Washington, D.C. resident out of bitcoin now worth about $240 million. He didn't hack an exchange or break into a bank — he went after one person. Then he spent the money on exotic cars, luxury goods, and parties.

Prosecutors haven't detailed exactly how Lam got his victim to hand over the bitcoin. They've only said it worked, and worked big. He's an eighth-grade dropout, not a coder or a hacker. That says something about how these thefts increasingly work. It's less about breaking cryptography and more about breaking trust. He faces up to 20 years in prison on the racketeering charge. What's still unclear is the money: authorities haven't said how much of the $240 million, if any, has been recovered.

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How many other "strangers" out there are sitting on bitcoin wallets big enough to make them a target? Crypto's whole appeal is controlling your own money, no bank required. That's also its biggest weakness once someone tricks you out of your keys. There's no fraud department to call back.