NZ Man Arrested in $265M Crypto Scam Linked to FBI Probe

New Zealand Man Arrested in Global $265M Crypto Scam Tied to FBI Investigation

A man from Wellington, New Zealand, has been arrested as part of a sweeping FBI-led investigation into a sophisticated international cryptocurrency fraud scheme. Authorities allege that the operation defrauded victims of over $450 million NZD (approximately $265 million USD) through a complex series of crypto transactions and laundering activities.

The arrest is one of 13 made following coordinated law enforcement actions across Auckland, Wellington, and California, executed over a three-day period. New Zealand Police confirmed the man’s arrest, noting his significant role in what they describe as an organized transnational criminal network.

Charges Include Racketeering, Wire Fraud, and Money Laundering

According to the U.S. Department of Justice, the individual faces serious federal charges, including racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering. These charges are part of a broader indictment targeting a criminal enterprise accused of exploiting victims to obtain large amounts of cryptocurrency between March and August 2024.

Authorities believe the group used deceptive schemes to manipulate at least seven victims into transferring digital assets, which were then funneled through various cryptocurrency platforms to obscure their origin and destination—a classic case of cryptocurrency laundering.

Lavish Spending on Luxury Goods and Services

Prosecutors allege that proceeds from the stolen funds were used to finance an extravagant lifestyle. Approximately $9 million was reportedly spent on luxury vehicles, high-end designer items like handbags, watches, and clothing, along with exclusive services including nightclub access, private security, and premium rentals in cities such as Los Angeles, Miami, and the Hamptons.

The accused appeared in Auckland District Court, where he was granted bail with interim name suppression. He is scheduled to reappear before the court on July 3.

International Law Enforcement Collaboration

New Zealand Police emphasized the importance of global cooperation in combating cybercrime. “We have worked closely with our law enforcement colleagues in the United States in support of their investigation,” they stated. “Today’s search warrant and arrest reflects the importance of international partnerships where criminals are operating across borders.”

The investigation remains active and ongoing, with further developments anticipated as authorities continue to pursue leads across multiple jurisdictions.

Surge in Crypto Thefts: $360 Million Lost in April 2025

In a related trend, cryptocurrency theft surged dramatically in April 2025, with losses reaching $360 million across 18 separate hacking incidents, according to data from blockchain security firm PeckShield. This marks an astonishing 990% increase compared to March’s $33 million in reported crypto losses.

The surge was largely driven by a single massive event involving a $330 million unauthorized Bitcoin transaction, identified by blockchain investigator ZachXBT. The transfer was later confirmed to be the result of a social engineering attack targeting an elderly individual in the United States. This incident now ranks among the largest single crypto thefts in history.