Detectives believe they beat 23-year-old Israel Maisonet outside a home on the 300 block of South 6th Street.
During the scuffle, Maisonet was stabbed in the neck and died a short time later.
Authorities say the seven suspects belong to a gang called the South Money Goons.
They are no stranger to officers.
"They've been involved in the distribution of controlled substances in that area of the city. They've been involved in robberies, burglaries, and assaults throughout the city of Reading," Berks County District Attorney John Adams said.
Officials say all seven were charged with third degree murder and aggravated assault.
Of those who were granted bail, it was set at $1-million dollars apiece.