Wellington man arrested in $450m international cryptocurrency scam

A Kiwi has been arrested in an FBI probe into a criminal group that stole cryptocurrency valued at US$265 million ($450m). Photo / Kin Cheung

• A Wellington man was arrested in an FBI probe into a US$265 million cryptocurrency theft.
• Police allege the group laundered funds through multiple platforms and bought luxury items with the proceeds, including $9 million in exotic cars.
• The man faces charges of racketeering, conspiracy to commit wire fraud, and money laundering.

A Wellington man has been arrested as part of an FBI investigation into an organised criminal group that stole cryptocurrency valued at US$265 million ($450m).

The cryptocurrency is alleged to have been fraudulently obtained by manipulating seven victims and was subsequently laundered through multiple cryptocurrency platforms, according to police.

This occurred between March and August 2024.

“Over the past three days, search warrants have been executed in Auckland, Wellington, and California with several people arrested, including one in New Zealand. A total of 13 people are facing charges,” police said in a statement.

The man from Wellington was arrested by the police Financial Crime Group in Auckland this morning.

He has been indicted by the United States Department of Justice under US Federal law with charges of racketeering (Rico), conspiracy to commit wire fraud, and conspiracy to commit money laundering.

Police said it is alleged the defendants used the stolen virtual currency to buy $9m of exotic cars, and spent hundreds of thousands of dollars on luxury handbags, watches and clothing, nightclub services, private security guards and rental homes in Los Angeles, the Hamptons and Miami.

The man was bailed after appearing in the Auckland District Court today.

He received interim name suppression and is due to reappear in the court on July 3.

Police said they had worked closely with law enforcement in the US in support of their investigation.

“Today’s search warrant and arrest reflect the importance of international partnerships where criminals are operating across borders,” police said.

Police said the investigation is ongoing and no further comment will be made.

More to come