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A New Zealand man has been arrested as part of a global cryptocurrency fraud investigation led by the FBI. The operation, which allegedly stole NZ$450 million (approximately US$265 million), involved a coordinated effort between New Zealand and US law enforcement.
Thirteen individuals have been charged in total following searches in Auckland, Wellington, and California. The accused are alleged members of an organized crime group who manipulated seven victims into relinquishing substantial amounts of cryptocurrency between March and August 2024. This cryptocurrency was subsequently laundered through various platforms.
The New Zealand man, one of those charged, faces federal indictments in the US, including charges of racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering. The Department of Justice is pursuing these charges under US federal law.
Court documents allege that the stolen funds were used to purchase approximately $9 million in luxury vehicles and were spent lavishly on high-end goods such as designer handbags, watches, and clothing. The accused also allegedly used the funds for services including nightclub access, private security, and rentals in Los Angeles, Miami, and the Hamptons.
The accused appeared in Auckland District Court and was granted bail under interim name suppression. A further court appearance is scheduled for July 3rd. New Zealand Police highlighted the importance of international cooperation in apprehending criminals operating across borders, emphasizing the close collaboration with US law enforcement throughout the investigation.
This arrest follows a period of significant increases in cryptocurrency theft. April 2025 saw a dramatic 990% increase in reported losses compared to March, reaching almost $360 million across 18 separate hacking incidents, according to PeckShield. A single social engineering attack targeting an elderly US resident accounted for a significant portion of this increase, resulting in the loss of $330 million in Bitcoin – one of the largest individual crypto thefts on record. The investigation into the New Zealand-based fraud ring is ongoing.
