- The FBI arrested 13 individuals in a sophisticated crypto fraud.
- Suspects allegedly spent millions on luxury cars, designer goods, and high-end rentals.
- The FBI-led investigation spanned New Zealand and California with coordinated raids.
In the latest development, New Zealand authorities and US officials collaboratively solved a crypto fraud case conducted by 13 scammers. These fraudsters are from several jurisdictions. This is one of the largest crypto crime busts, as this operation defrauded victims of $265 million.
Wellington Man Among 13 Arrested in US $265 Million Crypto Fraud
A Wellington man has been arrested in an international clampdown on a cryptocurrency scam reported across New Zealand and America. The man, whose name is being kept from the public by court order, is charged with several serious offenses under US federal law, including conspiracy to commit wire fraud and money laundering.
Authorities conducted search operations in Auckland, Wellington, and California after a collaborative investigation by the FBI and New Zealand Police. The criminal group reportedly cheated seven individuals during the period from March to August 2024. They persuaded the victims to send large amounts of cryptocurrency, which was then laundered through several financial channels.
The accused are believed to have lavished their stolen money on extravagant purchases such as $9 million worth of exclusive cars. The suspects also spent vast amounts on a lavish lifestyle. They spent on designer clothes, VIP club entries, private security services, and renting high-end residences in upmarket neighbourhoods of Los Angeles, Miami, and the Hamptons.
The Wellington guy has been released on bail and will appear back in court on July 3rd for the next stage of the case.
The incident arises as the number of cryptocurrency-related crimes is rapidly increasing. According to PeckShield, April 2025 witnessed more than $360 million in cryptocurrency thefts from 18 different incidents, representing a 990% jump over the $33 million stolen in March. A single instance of social engineering against an elderly American victim accounted for almost one-third of the total losses in April.
The New Zealand Police have stressed that the investigation is ongoing and underlined the need for strong international cooperation among law enforcement agencies to tackle transnational financial crimes involving digital assets.
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