Brooklyn and FBI Dismantle Crypto Scam Network Targeting Russian Speakers
Authorities seize hundreds of scam sites and servers
Brooklyn prosecutors and the FBI have seized or disrupted 241 websites and 112 servers linked to a cryptocurrency investment scam that targeted Russian-speaking victims in the United States.
The operation, announced Oct. 15, ended a three-year investigation into a fraud network that used online infrastructure in Ukraine and other Eastern European countries.
No arrests were announced.
Key numbers from the crackdown
- 241 scam websites seized or disrupted
- 112 servers taken offline
- About $300,000 recovered so far
- Roughly 84% of FBI-reported investment-fraud losses in 2025 involved crypto scams
What the Brooklyn district attorney said
Brooklyn District Attorney Eric Gonzalez said the scheme stole tens of millions of dollars by running Russian-language Facebook ads that promised investment opportunities.
Fake advisers then called victims, coached them to buy cryptocurrency and send it to fraudulent trading platforms. When victims tried to withdraw their money, the platforms locked their accounts or demanded more payments for supposed taxes and fees.
The scammers later contacted the same victims again, offering to recover the stolen funds through false promises, Gonzalez said.
Crypto fraud data from the FBI
Cryptocurrency investment scams made up roughly 84% of the $8.65 billion in investment-fraud losses reported to the FBI in 2025, according to the bureau's annual report.
Across all internet-crime categories, crypto-linked losses totaled $11.37 billion, about 54% of the $20.88 billion overall reported losses.
What investigators confirmed
The operation targeted servers hosted by Eastern European and U.S. companies that held victim data and the software used to run the fraud. The goal was to stop operators from quickly launching new sites after previous domain seizures.
The DA's Virtual Currency Unit had previously seized or disrupted 400 domains tied to similar crypto investment fraud, but replacement sites kept appearing.
What remains unclear
The total amount stolen has not been disclosed. Authorities describe the loss as "tens of millions" but provide no exact figure. Some victims lost their entire life savings, according to prosecutors.
No arrests have been announced, and the identities of the fraud operators remain unknown.
Why this matters for crypto investors
Cryptocurrency scams are a leading form of investment fraud in the United States. The FBI data shows that crypto-related losses now make up the majority of both investment-fraud and overall internet-crime losses.
The two-step scam—first stealing funds through fake investment platforms, then contacting victims again with false recovery offers—shows how scammers repeatedly exploit the same people.
What happens next
Brooklyn authorities are working to recover more funds from the seized assets. Officials said they hope disrupting the underlying servers will prevent the fraud network from quickly returning with new websites.
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