New Zealand authorities have arrested a Wellington-based man in connection with an international hundred-million-dollar cryptocurrency scam operation. The probe into this fraudulent scheme is being led by the US Federal Bureau of Investigation (FBI), resulting in simultaneous arrests of suspects across both nations.
International Crypto Scam Operation Produces 13 Suspects
In a post on May 16, Detective Inspector Christiaan Barnard of the New Zealand Police reported the Financial Crime Group’s success in apprehending a suspect in a crime syndicate accused of stealing $450 million New Zealand dollars ($265 million).
The defendant, who currently holds an interim name suppression, was nabbed in Auckland by authorities despite being based in Wellington, the nation’s capital. The man was presented to the Auckland District Court, where he was granted bail and issued an order to reappear on 3 July 2025.
Detective Inspector Barnard explains that the crypto fraud scheme under probe has reportedly been in operation between March and August 2024, affecting a total of seven victims. Furthermore, alongside the Wellington-based man, US authorities also arrested 12 suspects in California who are allegedly involved in the international fraud operation.
According to an indictment announcement by the US Department of Justice, District of Columbia, these defendants all held different roles in this organized crime, including but not limited to hackers, money launderers, callers, and residential burglars who stole cold hardware wallets.
Investigations further revealed that the stolen funds were used to patronize nightclub services, luxury handbags, luxury watches, luxury clothing, and rental homes in Los Angeles, the Hamptons, and Miami. Importantly, these fraud suspects also purchased a minimum of 28 expensive cards, ranging between $100,000 and $3.8 million.
What Are The Charges?
According to the US Department of Justice, 12 of the 13 defendants are facing charges of racketeering under the RICO Act, a single guilty count of which attracts a maximum prison sentence of 20 years.
Meanwhile, nine of these 12 suspects are also facing accusations of conspiracy to launder monetary instruments, with 8 defendants battling charges to commit wire fraud, both of which crimes can result in 20 years imprisonment.
The last defendant is charged with obstruction of justice after destroying evidence that could have been useful to the prosecutor, i.e., Assistant United States Attorney Kevin Rosenberg, Acting Deputy Chief of the Fraud, Public Corruption, and Civil Rights Section of the US Attorney’s Office for the District of Columbia.
In other news, the cryptocurrency market is now valued at $3.23 trillion following a 1.59% decline in the past day. Meanwhile, the total trading volume is down by 14.63% and valued at $95.19 billion.
