The man from Wellington was arrested by the police Financial Crime Group in Auckland this morning.
He has been indicted by the United States Department of Justice under US Federal law with charges of racketeering (Rico), conspiracy to commit wire fraud, and conspiracy to commit money laundering.
Police said it is alleged the defendants used the stolen virtual currency to buy $9m of exotic cars, and spent hundreds of thousands of dollars on luxury handbags, watches and clothing, nightclub services, private security guards and rental homes in Los Angeles, the Hamptons and Miami.
The man was bailed after appearing in the Auckland District Court today.
He received interim name suppression and is due to reappear in the court on July 3.
Police said they had worked closely with law enforcement in the US in support of their investigation.
“Today’s search warrant and arrest reflect the importance of international partnerships where criminals are operating across borders,” police said.
Police said the investigation is ongoing and no further comment will be made.
More to come