Kiwi Man Nabbed in $265 Million Cryptocurrency Fraud Investigation

New Zealand officials have detained a Wellington-dwelling individual linked to a global hundred-million-dollar cryptocurrency fraud scheme. The investigation into this deceptive plot is overseen by the US Federal Bureau of Investigation (FBI), leading to simultaneous detentions of suspects in both countries.

Global Crypto Fraud Scheme Yields 13 Suspects

In a statement on May 16, Detective Inspector Christiaan Barnard from the New Zealand Police announced the Financial Crime Group’s achievement in capturing a suspect affiliated with a crime ring accused of misappropriating $450 million New Zealand dollars ($265 million). 

The accused, who is currently under temporary name suppression, was apprehended in Auckland by law enforcement despite being situated in Wellington, the nation’s capital. The individual was presented to the Auckland District Court, where he was granted bail and ordered to reappear on 3 July 2025.

Detective Inspector Barnard clarifies that the cryptocurrency fraud operation under investigation is believed to have been active between March and August 2024, impacting a total of seven victims. Additionally, in conjunction with the Wellington-dwelling individual, US law enforcement also apprehended 12 suspects in California allegedly tied to the international fraud enterprise. 

As per an indictment announcement by the US Department of Justice, District of Columbia, these defendants accepted various roles in this organized crime, including but not limited to hackers, money launderers, telemarketers, and residential thieves who pilfered cold storage wallets. 

Further investigations revealed that the misappropriated funds were utilized to indulge in nightclub services, luxury handbags, high-end watches, designer clothing, and rental properties in Los Angeles, the Hamptons, and Miami. Notably, these fraud suspects also acquired at least 28 extravagant cards, ranging from $100,000 to $3.8 million.

What Are The Allegations? 

According to the US Department of Justice, 12 out of the 13 defendants are facing charges of racketeering under the RICO Act, with a single guilty verdict garnering a maximum prison term of 20 years. 

Meanwhile, nine of these 12 suspects also contend with accusations of conspiracy to launder financial instruments, while 8 defendants are confronting charges of wire fraud, both of which offenses could result in 20 years in prison.

The final defendant is accused of obstruction of justice for destroying evidence that could have been beneficial to the prosecutor, specifically 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 currently valued at $3.23 trillion following a 1.59% decrease in the past day. Meanwhile, the overall trading volume has fallen by 14.63%, amounting to $95.19 billion.

Editorial Process for bitcoinist is focused on providing thoroughly investigated, precise, and impartial content. We adhere to rigorous sourcing standards, and each page undergoes meticulous review by our team of leading technology experts and seasoned editors. This procedure ensures the integrity, relevance, and value of our material for our audience.