Brooklyn prosecutors and FBI dismantle international crypto scam

The Brooklyn District Attorney’s Virtual Currency Unit and the FBI have dismantled a multinational cryptocurrency investment scam that defrauded Russian-speaking Americans of tens of millions of dollars. The operation resulted in the seizure of 241 fraudulent websites and 112 servers located in the United States and Eastern Europe.

Investigators found that scammers used Russian-language Facebook advertisements to lure victims into fake investment platforms. Once victims deposited cryptocurrency, they were often unable to withdraw funds or were met with demands for additional fees. The criminals also reportedly targeted victims a second time using bogus recovery services that promised to retrieve the stolen assets.

While approximately $300,000 has been recovered so far, no arrests have been made. Prosecutors described the action as one of the largest cyber disruptions ever conducted by a local district attorney’s office, aimed at cutting off the technological infrastructure used to manage victim records and software.