Brooklyn Prosecutors and FBI Dismantle Crypto Fraud Network Targeting Russian Speakers, Seize 241 Websites
The Brooklyn District Attorney's Office and the FBI have seized or disrupted 241 websites and 112 servers linked to a crypto investment scam that allegedly stole tens of millions of dollars from Russian speakers within the United States. The action, which took place last week, is the result of a three-year investigation into a fraud network that operated using online infrastructure and IP addresses in Ukraine and other Eastern European countries. The scammers lured victims through Russian-language Facebook ads, promising investment opportunities, then posed as advisors to guide victims to purchase cryptocurrency and send it to fraudulent trading platforms. When victims attempted to withdraw funds, the platforms would lock accounts or demand payment of bogus taxes. Subsequently, the scammers would contact victims again, falsely claiming they could help recover the stolen funds. Although no arrests were announced in this operation, investigators focused on targeting servers hosting victim data and fraudulent software, aiming to prevent scammers from quickly launching new websites. According to the FBI's annual report, crypto investment scams accounted for approximately 84% of investment fraud losses reported to the FBI in 2025, totaling $8.65 billion. Brooklyn authorities have recovered approximately $300,000 and are working to recover more funds, as some victims lost their entire life savings.
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