FBI Nets NZ Man in $265M Crypto Scheme—Because Even Blockchain Can’t Outrun the Feds
Another day, another nine-figure crypto scam—this time with a Southern Hemisphere twist. The FBI just dragged a New Zealand resident into the spotlight for allegedly running a $265 million digital asset heist. Because nothing says ’decentralized finance’ like an international manhunt.
Details are still emerging, but here’s what we know: The operation was global, the tech was likely exploited, and somewhere, a hedge fund manager is using this news to justify their 2% management fee. The Feds aren’t saying whether it was a DeFi exploit, old-fashioned fraud, or just someone who forgot crypto’s first rule: Don’t get greedy.
One thing’s certain—when the blockchain ledger meets the FBI’s spreadsheet, bets are off. Maybe next time stick to rug pulls in the metaverse? At least those come with plausible deniability.
Global crypto scam operation nets 13 suspects
Over the past three days, search warrants have been executed in three locations—Auckland, Wellington, and California—resulting in multiple arrests, including the New Zealand suspect. A total of 13 individuals now face charges in connection with the scheme.
According to the details, the Wellington man has been accused by the US Department of Justice of racketeering (RICO). The charges also include conspiracy to commit wire fraud and conspiracy to commit money laundering.
Prosecutors allege the defendants used the funds from the crypto scam to fund an extravagant lifestyle. They also spent approximately $9 million on exotic cars, hundreds of thousands of dollars on luxury handbags, watches, and clothing, and up to $500,000 per evening on nightclub services.
Other purchases allegedly included private security guards and high-end rental properties in Los Angeles, the Hamptons, and Miami.
Following an appearance in Auckland District Court, the man was granted bail and received interim name suppression. He is scheduled to reappear in court on July 3.
According to a U.S. Department of Justice statement, the superseding indictment unsealed charges against 12 additional people. This includes both American and foreign nationals for allegedly participating in the cyber-enabled racketeering conspiracy. Several suspects were arrested in California this week, while two remain abroad and are believed to be living in Dubai.
The criminal enterprise allegedly operated from October 2023 through March 2025, with members reportedly acquiring a fleet of at least 28 exotic cars ranging in value from $100,000 to $3.8 million.
