New Zealand Man Arrested in $265M Crypto Scam as FBI Launch

A man from Wellington has been arrested as part of an FBI-led operation into a global cryptocurrency fraud scheme. Authorities claim the scam led to the theft of $450 million New Zealand dollars, $265 million between March and August 2024.

The arrest is part of a coordinated law enforcement effort across New Zealand and the United States. Search warrants were executed in Auckland, Wellington, and California over the past three days, according to the New Zealand Police.

FBI Leads Probe into $265M Global Crypto Scam

The suspect is one of 13 individuals charged in a joint investigation with the FBI and New Zealand Police. The group stands accused of having run a skilled fraud scheme on seven people.

It is claimed that the victims were directed to send a large amount of cryptocurrency. Next, the money was sent through several digital sites to make it look like it came from a different source. Authorities report that the operation involved cross-border activity and used complex crypto pathways.

The U.S. Department of Justice has indicted the Wellington man on multiple charges. These include racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering.

Stolen Funds Used for Luxury Purchases and Services

It is alleged that the laundered cryptocurrency went to finance extravagant expenses. Luxury cars such as sports cars and SUVs cost about $9 million to buy on average.

Money was also spent on high-end bags, watches from fancy brands, and designer clothing. Authorities also claim the group spent large sums on services such as nightclub access, private security, and vacation rentals in Los Angeles, Miami, and the Hamptons.

The suspect appeared at the Auckland District Court and was granted bail under interim name suppression. He is scheduled to appear again on July 3.

Authorities Emphasize Cross-Border Cooperation

New Zealand Police confirmed the operation was conducted with U.S. law enforcement. “We have worked closely with our law enforcement colleagues in the United States in support of their investigation,” police stated.

“Today’s search warrant and arrest reflect the importance of international partnerships where criminals are operating across borders,” they added. The investigation remains active, and further arrests are expected.

Crypto Thefts Surge in 2025, Raising Security Concerns

According to PeckShield, digital asset thefts surged in April 2025. In total, criminals stole $360 million through 18 separate events. This was a sharp jump compared to the $33 million loss in March.

A large amount of Bitcoin, valued at $330 million, was stolen during a major heist on April 28. ZachXBT, a blockchain analyst, spotted the unauthorized transfer, which was later traced to a social engineering attack on an elderly person in the U.S.

As a result, experts and users are calling for extra security measures on cryptocurrency platforms. Officials are still investigating fraud and money laundering cases connected to blockchain abuse.