According to PANews, a Wellington man has been arrested in Auckland for his alleged involvement in a global cryptocurrency fraud operation led by the U.S. Federal Bureau of Investigation. The criminal group reportedly stole $265 million worth of cryptocurrency from seven victims and laundered the funds through various platforms between March and August 2024.
New Zealand police stated that search warrants were executed over the past three days in Auckland, Wellington, and California, resulting in several arrests, including one in New Zealand. A total of 13 individuals face charges. The U.S. Department of Justice has charged the Wellington man under U.S. federal law with racketeering (RICO), conspiracy to commit wire fraud, and conspiracy to commit money laundering. He appeared in Auckland District Court today, where he was granted bail and temporarily prohibited from being named. He is scheduled to reappear in court on July 3, 2025.
Previously, the U.S. Department of Justice indicted 12 suspects involved in a $263 million cryptocurrency crime, accusing them of participating in a criminal network organized by ringleader Malone Lam. The group used social engineering scams, database intrusions, and physical theft of hardware wallets to commit their crimes. Lam is personally accused of a single fraud amounting to $230 million. Ten defendants have been arrested, while two accomplices in Dubai remain at large. The indictment reveals the group's roles included target selection, phone scams, money laundering, and physical theft. Lam allegedly remotely monitored victims' iCloud data and directed accomplices to commit burglaries. Records from August 2024 indicate the group stole 4,100 bitcoins, valued at $385.4 million at the time, through peer-to-peer scams.
