A man has been arrested in Auckland today, May 16, as part of a Federal Bureau of Investigation (FBI) inquiry into an organised criminal group who allegedly stole cryptocurrency valued at NZD$450 million from seven victims.

Detective inspector Christiaan Barnard says the Wellington-based man was arrested by the Financial Crime Group this morning.

“Between March and August, 2024, the cryptocurrency is alleged to have been fraudulently obtained by manipulating the victims and subsequently laundered through multiple cryptocurrency platforms.

“Over the past three days, search warrants have been executed in Auckland, Wellington, and California with several people arrested, including one in New Zealand.

“A total of 13 people are facing charges. The Wellington man has been indicted by the US Department of Justice under US Federal law with charges of racketeering (RICO), conspiracy to commit wire fraud, and conspiracy to commit money laundering.”

It’s alleged the defendants scammed seven victims, spending the stolen virtual currency to purchase, among other things, $9 million of exotic cars, hundreds of thousands of dollars on luxury handbags, watches and clothing, nightclub services and private security guards and rental homes in Los Angeles, the Hamptons and Miami.

The man was bailed after appearing in the Auckland District Court today where he received interim name suppression. He’s due to reappear in court on July 3.

“We’ve worked closely with our law enforcement colleagues in the United States in support of their investigation,” Barnard says.

“Today’s search warrant and arrest reflects the importance of international partnerships where criminals are operating across borders.”