New Zealand authorities have arrested a Wellington man in connection with an international billion-dollar cryptocurrency scam. The investigation into the fraud scheme was led by the FBI, leading to the arrest of suspects in both countries at the same time.
International crypto scams generate 13 suspects
In a May 16 article, New Zealand police detective Christiaan Barnard reported the successful arrest of a criminal suspect accused of stealing $450 million in New Zealand dollars ($265 million).
The defendant currently holding a temporary name was arrested by authorities in Oakland despite being located in Wellington, the capital of the United States. The man was sent to Auckland District Court, where he was released on bail and issued an order on July 3, 2025.
Detective Inspector Barnard explained that the crypto fraud scheme under investigation was already Operated between March and August 2024, affecting seven victims. In addition, along with Wellington-based people, U.S. authorities have arrested 12 California suspects, allegedly involved in international fraud operations.
According to a prosecution notice from the U.S. Department of Justice in the District of Columbia, the defendants play different roles in such organized crime, including but not limited to hackers, money launderers, callers and residential thefts that steal cold hardware wallets.
The investigation further revealed that the stolen funds were used to patronize nightclub services, luxury handbags, luxury watches, luxury clothing, and rental homes in Los Angeles, Hampton and Miami. Importantly, these fraud suspects also purchased at least 28 expensive cards, ranging from $100,000 to $3.8 million.
What is the fee?
According to the U.S. Department of Justice, 12 of the 13 defendants face charges of extortion, with one of the convicted charges sentenced to up to 20 years in prison.
Meanwhile, nine of the 12 suspects are also facing charges of conspiracy to launder money tools, with eight defendants fighting crimes for wire fraud, both of which could result in 20 years in prison.
The last defendant was destroying evidence that could be against prosecutors, namely, Kevin Rosenberg, assistant U.S. Attorney, fraud, public corruption and acting vice president of the civil rights division of the U.S. Attorney’s Office, was accused of obstructing justice.
In other news, the past day has dropped by 1.59%, and the cryptocurrency market is now worth $3.23 trillion. Meanwhile, total trading volume fell 14.63% to a value of $95.19 billion.
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