New Zealand Man Arrested in $265M Crypto Scam Tied to FBI Probe
A dramatic turn of events has unfolded in the world of cryptocurrency as authorities in New Zealand have arrested 13 individuals in connection with a massive $265 million crypto scam. The investigation, led by the FBI, has shed light on a global operation that allegedly stole $450 million New Zealand dollars from unsuspecting victims.
The mastermind behind this scheme is a Wellington man who has been indicted under US racketeering laws. According to sources close to the case, the accused individual was one of 13 people charged after authorities executed search warrants across Auckland, Wellington, and California over the past three days.
The Allegations Against the Accused
Prosecutors allege that members of an organized criminal group manipulated seven victims to obtain large amounts of cryptocurrency. The stolen funds were then laundered through multiple platforms between March and August 2024. It is believed that the thieves used their ill-gotten gains to purchase luxury vehicles, high-end goods, and services.
The accused allegedly spent lavishly on luxury items worth $9 million, including designer handbags, watches, and clothing. They also indulged in extravagant activities such as nightclub access, private security, and rentals in Los Angeles, Miami, and the Hamptons.
The FBI's Investigation
The US Department of Justice has taken a keen interest in this case, with one of the accused individuals indicted under federal law. The charges include racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
According to the police, they have worked closely with their law enforcement colleagues in the United States to support their investigation. They believe that international partnerships are crucial in combating cross-border crimes, and today's search warrant and arrest demonstrate this commitment.
The Rise of Crypto Theft
Digital asset thefts have been on the rise in recent months, with nearly $360 million stolen across 18 separate hacking incidents in April 2025. This represents a staggering 990% jump from March when reported losses stood at just $33 million.
The sharp increase was largely attributed to a single unauthorized Bitcoin transfer that accounted for the bulk of the month's losses. A blockchain analyst, ZachXBT, identified a suspicious $330 million BTC transaction on April 28, which was later confirmed as a social engineering attack targeting an elderly US resident.
Conclusion
The arrest of this Wellington man marks a significant turning point in the ongoing battle against cryptocurrency scams. As law enforcement agencies continue to work together internationally, it is clear that the tide is turning against these nefarious actors.