FBI and Brooklyn prosecutors shut down crypto scam network targeting Russian-speaking Americans
US authorities dismantle crypto scam network
Brooklyn prosecutors and the FBI have shut down a cryptocurrency investment fraud network that stole tens of millions of dollars from Americans, primarily Russian-speakers. The operation, carried out last week and announced on Wednesday, resulted in the seizure of 112 servers and the closure of 241 websites.
No arrests were made in connection with the crackdown. The servers were hosted by companies in Eastern Europe and the United States, according to the Brooklyn District Attorney's Office.
Key details of the operation
- 112 servers were seized and 241 websites were shut down
- The scheme targeted Russian-speaking Americans
- Tens of millions of dollars were stolen from victims
- No arrests have been made
- The operation was led by the Brooklyn District Attorney's Virtual Currency Unit and the FBI
What prosecutors say
Brooklyn District Attorney Eric Gonzalez said the scammers stole millions through an elaborate investment scheme and then tried to exploit victims again with false promises to recover their money. He credited the office's Virtual Currency Unit and the FBI for uncovering the network's infrastructure.
Assistant District Attorney Alona Katz, who led the investigation, told Bloomberg that seizing the servers was critical because it disrupted the scammers' ability to create new websites and contact victims. "We disabled the back end of the operation," Katz said.
Crypto fraud is rising across the US
The crackdown comes as cryptocurrency-related fraud continues to grow nationwide. Americans reported $11.4 billion in crypto fraud losses in 2025, a 22% increase from 2024, according to FBI figures cited by Bloomberg.
What is still unclear
The identities of those behind the scam network have not been publicly disclosed, and no arrests have been made. It is also not clear from available sources how much of the stolen funds can be recovered for victims.
Why this matters
Cryptocurrency investment scams remain one of the fastest-growing forms of financial fraud in the US. The targeting of Russian-speaking communities highlights how scammers exploit language and cultural ties to build trust with victims. Shutting down the infrastructure behind these operations — rather than just individual sites — can make it harder for networks to quickly restart their schemes.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.