Thirteen Face Charges in $265 Million Cryptocurrency Fraud Scheme

Authorities have taken a New Zealand man into custody for allegedly being involved in a global operation that stole $265 million in cryptocurrency from seven victims. The arrest is tied to a broader U.S. Department of Justice (DOJ) case targeting a network that reportedly used fraudulent tactics to acquire and launder large amounts of digital assets.

Good to know

• The DOJ has charged 13 individuals across multiple countries in this case.
• The theft took place over five months in 2024 and involved social manipulation.
• The group reportedly used the stolen funds to buy luxury goods, private security, and club access.

The man from Wellington, New Zealand, is the latest person linked to an international scheme accused of siphoning crypto through deception. Between March and August 2024, the group allegedly manipulated victims and gained access to their assets. The DOJ has charged the New Zealander with racketeering, wire fraud conspiracy, and money laundering conspiracy.

He is one of 13 people facing charges. Others include individuals based in Auckland and California. Several arrests had already taken place prior to this one.

Prosecutors say stolen crypto funded lavish spending

According to the DOJ, the criminal group did not just launder the funds—they spent the proceeds on luxury lifestyles. Some of the money reportedly went toward high-end items such as designer bags, cars, clothing, private security, rented luxury homes, and VIP experiences at nightclubs.

U.S. prosecutors claim the funds were cycled through multiple crypto exchanges in an effort to hide their origins before being used.

Organized structure behind the operation

This was not a random theft. Investigators describe the group as having an internal structure that included hackers, callers, money launderers, organizers, and even burglars. The team is believed to have started its activities as early as October 2023, indicating a well-coordinated effort.

In an earlier development tied to the same investigation, two members—Malone Lam and Jeandiel Serrano—were arrested for allegedly stealing $230 million in crypto from one individual. The two reportedly used complex laundering methods in an attempt to conceal the funds.

The DOJ continues to coordinate with international partners as the case expands.