Brooklyn DA Dismantles Crypto Scam Network, Seizes Hundreds of Domains

crypto scam network — The Brooklyn District Attorney’s office, working with the FBI, has dismantled the infrastructure of a major cryptocurrency investment scam that defrauded Russian-speaking victims of tens of millions of dollars.

In a coordinated operation across three U.S. time zones, authorities seized or disrupted 241 fraudulent domains and over 100 cloud servers that hosted the scam’s victim data and operational software. The action targeted servers hosted by both Eastern European and American companies, crippling the network’s ability to launch new scam sites.

Brooklyn DA Eric Gonzalez stated the operation by his Virtual Currency Unit “struck at the heart of this criminal enterprise.” The scam lured victims through Russian-language Facebook ads, where fake advisors guided them to deposit funds on fraudulent crypto platforms. Victims were later locked out of accounts or hit with fake fees when attempting to withdraw.

Prosecutors noted that scammers would later pose as recovery services to target victims a second time. The three-year investigation has so far recovered approximately $300,000, with efforts ongoing to reclaim more stolen assets.