Brooklyn DA disrupts crypto scam network across 241 domains
- Brooklyn prosecutors disrupted a cryptocurrency investment scam, disabling 241 domains and 112 servers.
- The operation targeted fraudsters who stole tens of millions of dollars from Russian-speaking victims across the US.
- Investigators also uncovered a recovery scam that targeted victims again after their initial losses.
Brooklyn District Attorney Eric Gonzalez has announced the disruption of a cryptocurrency scam network spanning 241 domains and 112 servers.
The operation followed a three-year investigation into fraud targeting Russian-speaking communities in Brooklyn and elsewhere across the United States.
“When scammers halfway around the world target Brooklyn residents, they should know they are not beyond our reach,” Brooklyn District Attorney Eric Gonzalez said in a statement.
The scammers allegedly used Russian-language Facebook advertisements and fake investment platforms to persuade victims to buy cryptocurrency and transfer funds.
After victims tried to withdraw their money, the operators allegedly blocked access or demanded additional fees and taxes.
Investigators also found a recovery scam that contacted victims weeks later, promising to retrieve their stolen cryptocurrency for further payments.
The Brooklyn District Attorney’s Office said it had recovered about US$300,000 and estimated total losses at tens of millions of dollars.
The operation, conducted with FBI assistance, targeted the servers behind the fraudulent websites to make it harder for scammers to rebuild their network and contact victims.
