A Wellington man was arrested as part of a $265M crypto scam investigation involving law enforcement from New Zealand and the United States. The man was one of 13 people charged in a coordinated operation led by the FBI.
Authorities carried out search warrants in Wellington, Auckland, and California over three days. The investigation centers on an international crypto fraud scheme that targeted seven victims. The scheme reportedly ran from March to August 2024.
The New Zealand Police confirmed the man is now facing charges in the United States under federal laws. The U.S. Department of Justice indicted him for racketeering, conspiracy to commit wire fraud, and money laundering.
He appeared at Auckland District Court, where the judge granted him bail and issued interim name suppression. Next, he is scheduled to appear in court again on July 3, 2025.
Crypto Laundering Included Luxury Cars, Handbags, Rentals
Authorities say the $265M crypto scam involved laundering stolen cryptocurrency into physical goods. Prosecutors claim around $9 million was spent on luxury vehicles, designer handbags, watches, clothing, and private rentals in Los Angeles, Miami, and The Hamptons.
The FBI crypto probe revealed that the group hid the origins of the stolen funds by using multiple wallets and platforms. Meanwhile, prosecutors confirmed the group spent the funds on nightclub access, security services, and other luxury items.
So far, officials have not recovered any of the stolen cryptocurrency. However, authorities continue tracking the movement of assets tied to the New Zealand crypto fraud.
Court documents show a pattern of spending tied to crypto laundering. The group allegedly moved the funds through anonymous wallets and offshore platforms, making it difficult to trace transactions.
FBI and New Zealand Police Coordinate in Cross-Border Case
The FBI crypto probe was supported by New Zealand Police and included international cooperation. In a public statement, New Zealand Police emphasized the cross-border nature of the case:
“Today’s search warrant and arrest reflects the importance of international partnerships where criminals are operating across borders.”
Officials confirmed the charges are part of a broader network operating across jurisdictions, though they did not name the other suspects. Meanwhile, authorities are treating the $265M crypto scam as an organized criminal enterprise.
The Wellington man arrested is expected to face extradition proceedings depending on the progress of the case in the United States. U.S. authorities are also reviewing digital evidence collected during the New Zealand raids.
Crypto Theft Hits $360M in April 2025, Report Says
The arrest follows a sharp rise in global crypto crimes. Blockchain security firm PeckShield reported that hackers stole $360 million in digital assets in April 2025.
This total covers 18 separate incidents and shows a 990% jump from March, when losses reached just $33 million. On April 28, a single $330 million Bitcoin transfer made up most of April’s stolen funds.
Blockchain analyst ZachXBT identified the transaction and linked it to a social engineering attack against an elderly U.S. resident. The victim unknowingly transferred funds to attackers.
PeckShield’s report shows that crypto thefts in 2025 are increasingly large in value and harder to trace. Stolen funds often move through mixers and layered accounts, complicating recovery.
$1.4B Bybit Hack and German Seizure Highlight Pattern
The $265M crypto scam adds to a string of large cases in 2025. In another recent case, German authorities seized $38 million in crypto connected to the Bybit hack and the eXch exchange.
The hacker in that case moved $1.4 billion in stolen assets, most of which was laundered within 10 days, according to PeckShield. The funds passed through several wallets before disappearing from traceable networks.
These cases highlight a pattern of international crypto theft, with stolen funds quickly moving across borders and platforms. Investigations now rely on blockchain analysis and joint law enforcement operations.
Authorities say the Wellington man arrested is one part of a broader case. The FBI crypto probe remains active, with further charges and evidence expected in the coming months.
