A Wellington-based man has been arrested in Auckland as part of a sweeping international crackdown on a NZD$450 million (US$265 million) cryptocurrency fraud scheme involving an organised criminal syndicate under investigation by the FBI.
The arrest, led by New Zealand Police’s Financial Crime Group, follows a coordinated three-day operation involving law enforcement agencies in New Zealand and the United States, including the execution of search warrants in Auckland, Wellington, and California. Thirteen individuals have been charged so far in different parts of the world for their alleged links to the scheme.
Christiaan Barnard, Chief Inspector of the Wellington Police, stated that the suspect, who was given name suppression this morning in court, is facing several severe charges brought by the U.S. Department of Justice. Some of these charges are racketeering under the RICO Act, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
Officials claim that the group was involved in seven incidents between March and August 2024, using methods to swindle individuals out of their cryptocurrency. Officials also claim that fraudsters used this stolen digital currency to buy a variety of items, including nightclub services, private security guards, rental homes in Miami, the Hamptons, and Los Angeles, $9 million worth of exotic cars, and hundreds of thousands of dollars worth of luxury handbags, watches, and clothes.
By arresting this person, we are showing how international cooperation leads to ending transnational financial crime. When criminals use crypto to operate internationally, we need to closely collaborate with partners worldwide.
He has been granted bail and is required to appear again before the Auckland District Court on July 3, 2025. As investigations continue, more developments are expected in what is shaping up to be one of the largest international crypto fraud cases in recent years.
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