$265M Crypto Scam: 13 Arrested in International Sting
A massive international cryptocurrency scam has led to the arrest of 13 individuals, with authorities in New Zealand and the US collaborating on the investigation. A Wellington-based man, granted interim name suppression, was arrested in Auckland and is facing charges related to a scheme that allegedly defrauded seven victims of $265 million USD ($450 million NZD) between March and August 2024. The investigation, spearheaded by the FBI, uncovered a complex operation involving multiple roles within the criminal syndicate; this included hackers, money launderers, callers, and even residential burglars who stole cold hardware wallets. The stolen funds were lavishly spent on nightclubs, luxury goods (handbags, watches, clothing), and high-end rentals in Los Angeles, the Hamptons, and Miami. The group also reportedly purchased at least 28 high-value cards, costing between $100,000 and $3.8 million. In the US, 12 suspects face charges under the RICO Act, with potential 20-year sentences for racketeering. Nine of these suspects also face charges of conspiracy to launder monetary instruments, and eight are charged with wire fraud, each carrying a maximum 20-year sentence. One additional suspect faces obstruction of justice charges for destroying evidence. The New Zealand suspect was granted bail and is scheduled to reappear in court on July 3, 2025. This case highlights the increasing sophistication and global reach of cryptocurrency-related crimes and the collaborative efforts required to bring perpetrators to justice.
(Source: https://bitcoinist.com/new-zealand-man-arrested-265-million-crypto-scam/)
