A Wellington man has been arrested in connection with an international crypto scam scheme involving over NZ$450 million (US$265 million). The arrest forms part of an FBI-led investigation into an organised criminal network that spanned New Zealand, the United States, and beyond.

New Zealand Police confirmed that 13 individuals have been charged following a coordinated three-day operation that saw simultaneous search warrants executed in Auckland, Wellington, and California.

Source: New Zealond Police

The charges stem from a complex crypto fraud operation that allegedly ran between March and August 2024, in which the accused manipulated seven victims to transfer vast sums in cryptocurrency. The stolen funds were then funnelled through various platforms in a sophisticated laundering process.

Indictments Under US Racketeering Laws

The central figure in the case, a man from Wellington whose identity is currently suppressed under interim court orders, has been indicted under United States federal racketeering laws.

According to the US Department of Justice, the man faces multiple charges, including:

• Racketeering (RICO) violations

• Conspiracy to commit wire fraud

• Conspiracy to commit money laundering

He appeared in Auckland District Court, where he was granted bail. He is due to reappear on 3 July 2025.

New Zealand authorities have worked closely with their US counterparts throughout the investigation. In a statement, police highlighted the strength of cross-border law enforcement partnerships, noting that international cooperation was vital to tracking criminal activity that moves across digital and physical borders.

Lavish Lifestyle Funded by Fraud

Investigators allege that the group used the illicitly obtained funds to bankroll a lavish and extravagant lifestyle, spending over US$9 million on luxury vehicles alone.

Prosecutors detailed a spree of indulgent purchases that included:

• Designer handbags, watches, and high-end clothing

• Exclusive nightclub access

• Premium rentals in Los Angeles, Miami, and The Hamptons

• Services such as private security and VIP hospitality experiences

These high-spending habits were key indicators that helped law enforcement trace and link the stolen assets to the perpetrators.

Surge in Crypto Crime Raises Global Concerns

This high-profile arrest comes amid a worrying surge in digital asset thefts, particularly in April 2025. According to blockchain security firm PeckShield, nearly $360 million in crypto was stolen across 18 hacking incidents — a 990% increase from March.

A significant portion of April’s losses came from a single incident: a $330 million Bitcoin transfer later confirmed as a social engineering attack. The victim, an elderly US resident, was tricked into handing over access to their digital wallet — one of the largest individual crypto thefts on record.

This rise in cybercrime underlines the growing need for both consumers and institutions to harden digital defences and tighten regulatory oversight.

Ongoing Investigation and Global Implications

Authorities say the investigation is far from over, and more arrests or indictments may follow. As digital currencies continue to grow in popularity and value, so too do the opportunities for exploitation by transnational criminal groups.

New Zealand Police concluded, “Today’s arrests underscore the importance of international cooperation in addressing complex, high-value cybercrimes. Criminals may hide behind the anonymity of blockchain, but they are not beyond the reach of global law enforcement.”