A man from Wellington, the capital city of New Zealand, has been arrested in connection with an FBI-led investigation into a global cryptocurrency fraud operation that allegedly stole $450 million New Zealand dollars ($265 million). New Zealand Police announced that the man is one of 13 individuals charged after authorities executed search warrants across Auckland, Wellington, and California over the past three days.
The charges against the individuals stem from allegations that members of an organized criminal group manipulated seven victims to obtain large amounts of cryptocurrency, which was then laundered through multiple platforms between March and August 2024. The US Department of Justice has indicted the man under federal law, including charges of racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
Prosecutors allege that the stolen funds were used to purchase $9 million worth of luxury vehicles and spent lavishly on high-end goods, including designer handbags, watches, and clothing, as well as services such as nightclub access, private security, and rentals in Los Angeles, Miami, and the Hamptons. The accused appeared in Auckland District Court and was granted bail with interim name suppression. He is scheduled to reappear on July 3.
According to the police statement, close collaboration with law enforcement colleagues in the United States has been crucial in supporting the investigation. They emphasized the importance of international partnerships in cases where criminals operate across borders. The investigation into the cryptocurrency fraud operation remains ongoing.
In a related development, blockchain security firm PeckShield reported a significant surge in digital asset thefts in April 2025, with nearly $360 million stolen across 18 separate hacking incidents. This figure represents a 990% increase from March when reported losses stood at just $33 million. The spike in losses was primarily attributed to a single unauthorized Bitcoin transfer that accounted for the majority of the month's losses.
On April 28, blockchain analyst ZachXBT identified a suspicious $330 million BTC transaction, which was later confirmed as a social engineering attack targeting an elderly US resident. This incident resulted in one of the largest individual crypto thefts to date.
The rise in cryptocurrency theft incidents underscores the ongoing challenges in securing digital assets and the need for robust security measures within the cryptocurrency ecosystem. As the industry continues to evolve, authorities and stakeholders are increasingly focused on combating fraud and enhancing cybersecurity measures to protect investors and prevent financial crimes in the digital asset space.
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