Key Takeaways
- • Brooklyn prosecutors and the FBI seized or disrupted 241 scam websites and 112 servers tied to a crypto investment fraud that allegedly stole tens of millions of dollars from Russian-speaking victims in the U.S.
- • The scheme lured victims through Russian-language Facebook ads promising investment returns, then had fake advisers coach them to buy cryptocurrency and send it to fraudulent trading platforms.
- • Authorities have seized about $300,000 so far, and no arrests were announced, according to District Attorney Eric Gonzalez.
- • The network allegedly returned to victims weeks later with fake fund-recovery offers, a second wave of exploitation that prompted the server-level takedown.
- • Crypto investment scams accounted for roughly 84% of the $8.65 billion in investment-fraud losses reported to the FBI in 2025, per the bureau's annual report.
Summary
Brooklyn District Attorney Eric Gonzalez and the FBI seized or disrupted 241 websites and 112 servers tied to a cryptocurrency investment fraud that allegedly stole tens of millions of dollars from Russian-speaking residents of the United States. The operation was carried out the prior week and followed a three-year investigation into a network that relied on online infrastructure and IP addresses in Ukraine and other Eastern European countries. No arrests were announced.
According to the district attorney, the scammers drew victims through Russian-language Facebook advertisements promising investment opportunities. Fake advisers then telephoned victims and coached them to buy cryptocurrency and transfer it to fraudulent trading platforms. When victims attempted to withdraw funds, the platforms locked accounts or demanded additional payments purportedly for taxes and fees.
The operators then targeted the same victims again. Gonzalez said the scammers "tried to exploit them again with false promises to recover their money," and recovered data showed contact a few weeks after the initial fraud offering to retrieve stolen funds. Prosecutors said some victims lost their entire life savings.
The Brooklyn DA's Virtual Currency Unit had previously seized or disrupted 400 domains tied to crypto investment fraud, but replacement sites continued to appear. This operation shifted focus to the Eastern European and U.S. hosting companies that held victim data and the software used to run the fraud, with the aim of preventing operators from quickly launching new sites. Authorities have seized about $300,000 and are working to recover additional funds.
The case aligns with FBI data showing crypto investment scams accounted for roughly 84% of the $8.65 billion in investment-fraud losses reported in 2025. Across all internet-crime categories, crypto-linked losses totaled $11.37 billion, or approximately 54% of the $20.88 billion overall, according to calculations based on the bureau's annual report.
According to the district attorney, the scammers drew victims through Russian-language Facebook advertisements promising investment opportunities. Fake advisers then telephoned victims and coached them to buy cryptocurrency and transfer it to fraudulent trading platforms. When victims attempted to withdraw funds, the platforms locked accounts or demanded additional payments purportedly for taxes and fees.
The operators then targeted the same victims again. Gonzalez said the scammers "tried to exploit them again with false promises to recover their money," and recovered data showed contact a few weeks after the initial fraud offering to retrieve stolen funds. Prosecutors said some victims lost their entire life savings.
The Brooklyn DA's Virtual Currency Unit had previously seized or disrupted 400 domains tied to crypto investment fraud, but replacement sites continued to appear. This operation shifted focus to the Eastern European and U.S. hosting companies that held victim data and the software used to run the fraud, with the aim of preventing operators from quickly launching new sites. Authorities have seized about $300,000 and are working to recover additional funds.
The case aligns with FBI data showing crypto investment scams accounted for roughly 84% of the $8.65 billion in investment-fraud losses reported in 2025. Across all internet-crime categories, crypto-linked losses totaled $11.37 billion, or approximately 54% of the $20.88 billion overall, according to calculations based on the bureau's annual report.
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