Key Takeaways
- • Brooklyn District Attorney's Virtual Currency Unit seized and disrupted 241 web domains and 112 servers tied to a multinational crypto investment scam, according to the primary source report.
- • The scam ran for more than three years, targeting Russian speakers across the United States through Russian-language Facebook ads and Russian-speaking advisors.
- • Tens of millions of dollars were lost by victims, some of whom lost life savings; about $300,000 has been recovered so far, and the office is pursuing further recoveries.
- • The operation also dismantled a secondary crypto recovery scheme that falsely promised to recover victims' stolen digital assets.
- • The office had previously seized or disrupted more than 400 related domains tied to crypto investment fraud.
Summary
Brooklyn prosecutors are dismantling the infrastructure of a major cryptocurrency investment scam that targeted Russian speakers across the United States. The Brooklyn District Attorney's Virtual Currency Unit said it seized and disrupted 241 web domains and 112 servers, which it described as one of the largest local cyber enforcement actions. According to the office, the servers were cloud-based and hosted by Eastern European and American companies, and their seizure deprives the scammers of access to the data populating the domains, victim information, and operational software.
The scheme ran for more than three years and relied on Russian-language Facebook advertisements and Russian-speaking advisors to lure victims into fake investment platforms. Victims transferred cryptocurrency to the sites and were later told they needed to pay additional fees and taxes before they could make a withdrawal. The operators also ran a crypto recovery scheme, convincing victims that their digital assets had been stolen and promising to recover the coins, which the office characterized as a second exploitation of the same victims.
The office estimates that tens of millions of dollars were lost, with some victims losing life savings. About $300,000 has been recovered so far, and prosecutors are working to claw back additional funds. The office had previously seized or disrupted more than 400 related domains tied to cryptocurrency investment fraud.
Brooklyn District Attorney Eric Gonzalez framed the action as a message to overseas operators targeting local residents. "When scammers halfway around the world target Brooklyn residents, they should know they are not beyond our reach," Gonzalez said. "These criminals stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then tried to exploit them again with false promises to recover their money."
The scheme ran for more than three years and relied on Russian-language Facebook advertisements and Russian-speaking advisors to lure victims into fake investment platforms. Victims transferred cryptocurrency to the sites and were later told they needed to pay additional fees and taxes before they could make a withdrawal. The operators also ran a crypto recovery scheme, convincing victims that their digital assets had been stolen and promising to recover the coins, which the office characterized as a second exploitation of the same victims.
The office estimates that tens of millions of dollars were lost, with some victims losing life savings. About $300,000 has been recovered so far, and prosecutors are working to claw back additional funds. The office had previously seized or disrupted more than 400 related domains tied to cryptocurrency investment fraud.
Brooklyn District Attorney Eric Gonzalez framed the action as a message to overseas operators targeting local residents. "When scammers halfway around the world target Brooklyn residents, they should know they are not beyond our reach," Gonzalez said. "These criminals stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then tried to exploit them again with false promises to recover their money."
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.