PANews reported on May 17 that a Wellington man was arrested in Auckland for allegedly participating in a global cryptocurrency fraud operation led by the FBI. This criminal group stole $265 million (NZD 450 million) in cryptocurrency from seven victims, and subsequently laundered the money through multiple platforms between March and August 2024.
New Zealand police stated that over the past three days, search warrants have been executed in Auckland, Wellington, and California, resulting in several arrests, including one in New Zealand. A total of 13 individuals are facing 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. The man appeared in the Auckland District Court today, where he was temporarily prohibited from disclosing his name and has since been granted bail. He is scheduled to appear again in the Auckland District Court on July 3, 2025.
Previously, the U.S. Department of Justice charged 12 suspects in connection with $263 million in cryptocurrency crimes, accusing them of participating in a criminal network organized by principal Malone Lam. This gang operated using social engineering scams, database breaches, and physical theft of hardware wallets, among other tactics, with Lam personally accused of committing a single fraud worth $230 million. Currently, 10 defendants have been arrested, while 2 accomplices in Dubai remain at large. The indictment shows the gang's division of labor included target selection, phone scams, money laundering, and physical theft. Lam was reported to have remotely monitored victims' iCloud data and directed accomplices to break in and steal. Records from August 2024 indicate that the gang stole 4,100 bitcoins (worth $385.4 million at the time) through P2P scams.
