The man appeared in the Auckland District Court on Friday.
Photo: RNZ/Marika Khabazi
A Wellington man has been arrested as part of an FBI investigation into an organised criminal group which is alleged to have stolen cryptocurrency valued at $450 million.
Detective Inspector Christiaan Barnard said 13 people faced charges, after search warrants were executed in Auckland, Wellington, and California.
The man was arrested by the Financial Crime Group in Auckland, one of several people taken into custody following the search warrants, but the only one from New Zealand.
It is alleged that between March and August 2024, the cryptocurrency was obtained by fraud, namely, by manipulating seven victims, and subsequently laundered through multiple cryptocurrency platforms.
The New Zealander had 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 is alleged that 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 New Zealander was bailed after appearing in the Auckland District Court on Friday where he received interim name suppression, and is due to reappear in the Auckland District Court on 3 July.
“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.”
He said police would be making no further comment, as this was an ongoing investigation.
