A man from New Zealand has been arrested for involvement in a $265 million encryption scam, with the FBI participating in the investigation.

Source: Cointelegraph Original: "New Zealand man arrested in $265 million crypto scam, FBI involved in investigation"

A man in Wellington, the capital of New Zealand, has been arrested for allegedly participating in a global cryptocurrency fraud led by the FBI, which reportedly stole NZD 450 million (approximately USD 265 million).

According to New Zealand police, the man is one of 13 people charged after authorities executed search warrants in Auckland, Wellington, and California over the past three days.

The accusation stems from a charge that members of an organized crime group manipulated seven victims to obtain a large amount of cryptocurrency between March and August 2024, and then laundered it through multiple platforms.

According to the announcement from the U.S. Department of Justice, the man has been charged under federal law with offenses that include extortion, conspiracy to commit wire fraud, and conspiracy to launder money.

Prosecutors allege that the stolen funds were used to purchase luxury vehicles worth $9 million and lavishly spent on high-end goods, including designer handbags, watches, and clothing, as well as nightclub entry, private security, and rental services in Los Angeles, Miami, and the Hamptons.

The defendant appeared in the Oakland District Court and was granted bail, with a temporary confidentiality on his name. He is scheduled to appear again on July 3.

"We closely collaborate with our law enforcement colleagues in the United States to support their investigations," the police stated. They added, "Today's search warrant and arrests reflect the importance of international cooperation, as criminals are operating across borders."

The investigation is still ongoing.

According to data from blockchain security company PeckShield, there was a surge in digital asset theft cases in April 2025, with 18 separate hacking incidents resulting in nearly $360 million stolen.

This figure represents a staggering 990% increase compared to the $33 million loss reported in March. This sharp rise is mainly attributed to an unauthorized Bitcoin (BTC) transfer, which accounted for the majority of the losses for the month.

On April 28, blockchain analyst ZachXBT discovered a suspicious $330 million BTC transaction. It was later confirmed that this incident was a social engineering attack targeting elderly residents in the United States, and is one of the largest personal crypto theft cases to date.

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