Brooklyn Cracks Down on Crypto Scam After Millions in Theft
Brooklyn and the FBI took 241 websites and 112 servers offline in an investigation into a Russian-speaking crypto scam ring. The fraud ran through Facebook ads, fake advisors, and fake trading platforms.
Key Takeaways
- Brooklyn prosecutors and the FBI took down or disrupted 241 websites and 112 servers that were allegedly part of a crypto investment scam.
- The fraud mainly lured Russian-speaking victims with Facebook ads and fake advisors who pushed them to send crypto.
- According to prosecutors, the scammers stole tens of millions of dollars and about $300,000 was seized.
Brooklyn prosecutors and the FBI have seized or disrupted 241 websites and 112 servers that they say were part of a crypto investment scam. The fraud is said to have stolen tens of millions of dollars from Russian-speaking victims in the U.S.
Fraud Through Fake Advisors
The action followed a three-year investigation into a network that relied on online infrastructure and IP addresses in Ukraine and other Eastern European countries, said Brooklyn District Attorney Eric Gonzalez. No arrests have been reported.
According to prosecutors, the scammers attracted victims with Russian Facebook ads promising investment opportunities. Fake advisors then called the victims and gave them instructions to buy crypto and send it to fraudulent trading platforms.
When victims tried to withdraw their money, those platforms blocked their accounts or asked for extra payments for so-called taxes and fees. In some cases, the scammers later tried to contact the same people again with fake promises to recover the money.
Servers Instead of Just Domains
The Virtual Currency Unit of the district attorney's office had previously seized or disrupted 400 domains tied to crypto fraud, but replacement sites kept popping up. This time, investigators went after the servers themselves, hosted by Eastern European and U.S. companies, where victim data and the scam's software were running.
That approach was meant to stop the operators from quickly setting up new sites. Brooklyn authorities have seized about $300,000 (€268,000), according to prosecutors, and are working to recover more money. Some victims lost their entire savings.
Why This Matters
The case shows how stubborn crypto scams still are, especially when fraudsters use multiple layers like ads, fake advisors, and recovery promises. For European readers, the key point is that the infrastructure behind these networks is often cross-border, with servers and IP addresses in multiple countries. The FBI also said that crypto investment scams in 2025 accounted for about 84% of the $8.65 billion (€7.7 billion) in investment fraud losses the bureau recorded. An earlier phishing case in Brooklyn also shows how often scammers pose as trusted parties to get victims to send money.
