A man was arrested in Auckland this morning as part of an FBI investigation into a group alleged to have scammed several victims out of NZ$450 million in cryptocurrency.
It was alleged cryptocurrency had been fraudulently obtained by manipulating seven victims between March and August 2024. The proceeds were then laundered through multiple cryptocurrency platforms.
The offenders allegedly spent millions of dollars on exotic cars, 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.
“Over the past three days, search warrants have been executed in Auckland, Wellington, and California, with several people arrested, including one in New Zealand,” Detective Inspector Christiaan Barnard said.
Thirteen people, including a Wellington-based man, were charged over the scheme.
The man was indicted by the US Department of Justice under US Federal law, charged with racketeering, conspiracy to commit wire fraud, and conspiracy to commit money laundering.
He was bailed after appearing in the Auckland District Court today, where he was also granted interim name suppression. He was due to reappear in the Auckland District Court on July 3.
“We have worked closely with our law enforcement colleagues in the United States in support of their investigation,” Barnard said.
“Today’s search warrant and arrest reflects the importance of international partnerships where criminals are operating across borders.
“There is an ongoing investigation, and no further comment will be made by police.”
