Key Takeaways
- • Brooklyn District Attorney Eric Gonzalez's Virtual Currency Unit, working with the FBI, seized or disrupted 241 web domains and 112 servers tied to a multinational crypto investment fraud targeting Russian speakers in the United States, per the DA's announcement.
- • The operation followed a three-year investigation and was executed last week across three time zones over several hours; no arrests have been announced.
- • Scammers used Russian-language Facebook ads and fake advisers to coach victims into buying crypto and sending it to scam-linked addresses, then returned weeks or months later with fake fund-recovery offers.
- • Brooklyn authorities have seized about $300,000 so far, while the office estimates tens of millions of dollars were stolen.
- • Investigators targeted cloud servers hosted by Eastern European and American companies to cut off the data, victim information and operational software needed to rapidly rebuild scam sites, a shift from earlier domain-only takedowns.
Summary
Brooklyn District Attorney Eric Gonzalez announced that his Virtual Currency Unit, working with the FBI, disrupted a multinational crypto fraud operation that targeted Russian speakers in the United States. The action shut down 241 web domains and 112 servers, which the office describes as one of the largest operational cyber disruptions ever undertaken by a local prosecutor's office. The operation was carried out last week after a three-year investigation, and no arrests have been announced.
According to the DA's announcement, scammers drew victims in through Russian-language Facebook ads promising investment opportunities. Fake advisadvisers then called targets and coached them through opening accounts on what appeared to be a crypto investment platform, and through buying crypto and transferring it to addresses tied to the site. Because crypto transfers settle irreversibly, unlike card payments that can be disputed, victims' losses were effectively final. Victims who tried to withdraw were told their accounts were locked or that they owed additional taxes and fees.
Data recovered in the investigation showed the same operators contacted victims a few weeks later, offering to retrieve the stolen funds. The office says the second approach turned a single theft into a repeat-victimization funnel, using websites, accounts and phone scripts that were already built.
The unit had previously seized or disrupted 400 crypto investment fraud domains, but replacement sites kept appearing. This time it targeted servers hosted by Eastern European and American companies that held victim data and the fraud software. Gonzalez said the network relied on online infrastructure and IP addresses in Ukraine and other Eastern European countries. The office says the disruption removes the scammers' ability to quickly create new websites and contact existing victims. Brooklyn authorities have seized about $300,000 so far and are working to recover more. The office estimates tens of millions of dollars were stolen, with some victims losing their entire life savings.
For broader context, the FBI's Internet Crime Complaint Center reported $8.65 billion in investment fraud losses in 2025, its costliest crime category, within $20.88 billion in total reported losses across 1,008,597 complaints. Cryptocurrency-tagged losses reached $11.37 billion, about 54% of the total, and crypto investment scams accounted for roughly 84% of the investment-fraud figure, according to the bureau's annual report. The FBI's Operation Level Up has reportedly reduced potential losses by more than $500 million since 2024.
According to the DA's announcement, scammers drew victims in through Russian-language Facebook ads promising investment opportunities. Fake advisadvisers then called targets and coached them through opening accounts on what appeared to be a crypto investment platform, and through buying crypto and transferring it to addresses tied to the site. Because crypto transfers settle irreversibly, unlike card payments that can be disputed, victims' losses were effectively final. Victims who tried to withdraw were told their accounts were locked or that they owed additional taxes and fees.
Data recovered in the investigation showed the same operators contacted victims a few weeks later, offering to retrieve the stolen funds. The office says the second approach turned a single theft into a repeat-victimization funnel, using websites, accounts and phone scripts that were already built.
The unit had previously seized or disrupted 400 crypto investment fraud domains, but replacement sites kept appearing. This time it targeted servers hosted by Eastern European and American companies that held victim data and the fraud software. Gonzalez said the network relied on online infrastructure and IP addresses in Ukraine and other Eastern European countries. The office says the disruption removes the scammers' ability to quickly create new websites and contact existing victims. Brooklyn authorities have seized about $300,000 so far and are working to recover more. The office estimates tens of millions of dollars were stolen, with some victims losing their entire life savings.
For broader context, the FBI's Internet Crime Complaint Center reported $8.65 billion in investment fraud losses in 2025, its costliest crime category, within $20.88 billion in total reported losses across 1,008,597 complaints. Cryptocurrency-tagged losses reached $11.37 billion, about 54% of the total, and crypto investment scams accounted for roughly 84% of the investment-fraud figure, according to the bureau's annual report. The FBI's Operation Level Up has reportedly reduced potential losses by more than $500 million since 2024.
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