The Brooklyn District Attorney's office has dismantled a multinational cryptocurrency scam operation that targeted Russian-speaking victims across the United States, draining tens of millions of dollars in the process.
Working with the FBI, investigators executed search warrants across three time zones and seized or disrupted 241 scam domains and more than 100 cloud servers hosted by Eastern European and American companies. The servers contained victim data, site content, and operating software used by the scammers.
How the Scam Operated
The scheme began with Russian-language investment advertisements on Facebook that lured victims to fake cryptocurrency platforms. Russian-speaking "advisors" then guided victims through opening accounts and purchasing digital assets.
When victims attempted to withdraw their funds weeks or months later, they were either locked out of their accounts or charged fraudulent "fees" and "taxes." Some victims lost their life savings in the initial fraud.
The scammers then contacted victims again, posing as recovery services and promising to retrieve stolen funds—a secondary fraud targeting those already victimized.
Investigation and Recovery
The three-year investigation, led by the Brooklyn District Attorney's Virtual Currency Unit, had previously taken down 400 scam domains. However, new fraudulent sites continued to emerge. By targeting the servers hosting the operation, authorities cut off the scammers' ability to rapidly launch replacement websites or contact previous victims.
The operation has recovered approximately $300,000 to date, with prosecutors continuing efforts to recover additional funds.
