Would this be allowed to go on in USA, Europe or even more developed Asia, let alone many other nations? Is there a chance that the NZ government might get involved?
A government can't make crypto appear out of thin air.
This stuff is long since gone.
It appears someone did get a small distribution back. These are usually people with contacts and such. Special treatment. It happens everywhere.
The funds are gone. Move on and don't beat yourself up.
Still give them hell though.