A New Zealand man is arrested in a $265 million crypto scam after an FBI-led investigation targeting global digital asset fraud
A Wellington-based man was apprehended in Auckland as part of an international investigation into a crypto scam operation that allegedly stole $265 million (NZD$450 million) from seven victims.
The Financial Crime Group of New Zealand made the arrest in response to an FBI-led investigation into the criminal network. According to authorities, the cryptocurrency was fraudulently acquired between March and August 2024 through victim manipulation tactics, with the stolen funds being laundered through multiple cryptocurrency platforms.
Thirteen individuals have been apprehended as part of a global crypto scam
Search warrants have been executed in three locations—Auckland, Wellington, and California—resulting in numerous arrests, including the New Zealand suspect, over the past three days. A total of 13 individuals are currently facing accusations concerning the scheme.
According to the specifics, the US Department of Justice has accused the Wellington individual of racketeering (RICO). Additionally, conspiracy to conduct money laundering and conspiracy to commit wire fraud are included in the charges.
Prosecutors contend that the defendants utilized the proceeds from the crypto scam to support an extravagant lifestyle. They also spent an estimated $9 million on exotic vehicles, hundreds of thousands of dollars on luxury handbags, watches, and clothing, and up to $500,000 per evening on nightclub services.
Private security officers and high-end rental properties in Miami, the Hamptons, and Los Angeles were purportedly among the other acquisitions.
After appearing in Auckland District Court, the man was granted bail and received interim name suppression. He is scheduled to appear in court again on July 3.
According to a statement from the US Department of Justice, the superseding indictment has revealed charges against 12 individuals. This encompasses American and foreign nationals purportedly involved in the cyber-enabled racketeering conspiracy. This week, numerous suspects were apprehended in California, while two are believed to be residing in Dubai and are currently abroad.
From October 2023 to March 2025, the criminal organization purportedly operated. Its members are said to have acquired at least 28 exotic cars, ranging from $100,000 to $3.8 million.