New Zealand: $21 million in cryptocurrency seized from Hamilton movie pirate

[Anna Kushina (櫛名アンナ)]

A Hamilton man has had more than $21 million in cryptocurrency seized by police after admitting his role in downloading and selling pirated movies.

The crypto-cash was taken from Jaron McIvor by the Commissioner of Police, with details of the seizure revealed in a High Court judgement released on Friday.

“Police investigated Jaron McIvor for downloading and selling pirated movies,” said Justice Mathew Downs in his written ruling.

“The Commissioner of Police restrained funds in his bank accounts totalling almost $818,000 and cryptocurrencies now worth more than $21 million. Mr McIvor acknowledged profiting from downloading and selling movies protected by copyright.”

The ruling also revealed some of the “ill-gotten gains” found their way into bank accounts of his brother Andrew.

“The Commissioner restrained almost $386,000 and cryptocurrencies now worth $1.77 million in his accounts.”

Both men agreed to forfeit all of the crypto-currencies “and all but $400,000”.

“I approved their agreement with the Commissioner on November 16, 2020,” Downs said.

“I reached this conclusion because the overwhelming majority of restrained funds were forfeited, and litigation over the balance (of $400,000) would be disproportionately expensive and time-consuming.

“In short, I considered settlement met the public interest.”

Earlier, NZME reported that McIvor, who lived in what was described as a modest rental property in Hamilton, came onto law enforcement radar after an inquiry by tax officials in the United States.

When police knocked on his door in June, NZME reported he “handed them the key codes to unlock more than $6 million of various cryptocurrencies”.

Detective Senior Sergeant Keith Kay told NZME tax authorities in the United States became involved after online payment service PayPal raised a red flag with “suspicious activity reports”.