New Zealand Man Indicted in $265M Global Crypto Scam

Key Takeaways

•  The scam led to the theft of $450 million New Zealand dollars, between March and August 2024.
• The U.S. Department of Justice has filed multiple federal charges against the accused, including racketeering under the RICO Act, conspiracy to commit wire fraud, and conspiracy to commit money laundering

A man from Wellington, New Zealand has been arrested by the FBI for his alleged involvement in $260 million crypto theft. According to the authorities, the scam led to the theft of $450 million New Zealand dollars, between March and August 2024.

The U.S. Department of Justice has filed multiple federal charges against the accused, including racketeering under the RICO Act, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He was arrested in Auckland by the Financial Crime Group and granted bail under interim name suppression after appearing in the Auckland District Court. He is scheduled to reappear on July 3.

According to authorities, the individual is one of 13 people charged in a complex financial crime that targeted seven victims across multiple jurisdictions. The scheme allegedly tricked victims into transferring large sums of cryptocurrency, which were then routed through multiple digital platforms to disguise the funds’ origins. The operation reportedly involved the use of sophisticated obfuscation techniques to mask the transaction trail.

As part of the broader investigation, law enforcement executed search warrants in Auckland, Wellington, and California. Several suspects were taken into custody, with the New Zealand national being the only one arrested locally.

Authorities claim that stolen crypto was used to fund a lavish lifestyle. They allege the group spent millions on exotic cars, high-end handbags, designer watches, and luxury clothing. Further, they spend the money on nightclub services, private security personnel, and short-term vacation rentals in places like Los Angeles, Miami, and the Hamptons.

Detective Inspector Christiaan Barnard, who is leading the investigation for New Zealand Police, highlighted the importance of international cooperation in tackling global crypto-related crime. “Today’s search warrant and arrest reflect the importance of international partnerships where criminals are operating across borders,” he said. “We have worked closely with our law enforcement colleagues in the United States in support of their investigation.”

More inquiry is ongoing and further arrests are expected in the coming months. The latest development comes amid a concerningly increasing number of crypto scams in recent months. As per leading blockchain security firm Immunefi, April 2025 witnessed 15 attacks targeting DeFi projects in which a staggering $92.5 million was stolen