US Authorities Dismantle Crypto Scam Network That Stole Tens of Millions

Brooklyn Prosecutors and FBI Seize 112 Servers, Shut Down 241 Websites Tied to Investment Scams Targeting Russian-Speaking Americans

Brooklyn prosecutors and the FBI seized 112 servers and shut down 241 websites linked to investment scams targeting Russian-speaking Americans.

Prosecutors in Brooklyn, New York, working with the Federal Bureau of Investigation (FBI), have disrupted an Eastern European cryptocurrency fraud ring accused of stealing tens of millions of dollars from mostly Russian-speaking Americans.

The operation, which took place last week and was announced Wednesday, led to the shutdown of 241 websites and the seizure of 112 servers hosted by companies in Eastern Europe and the United States, according to the Brooklyn District Attorney's office. No arrests were made.

"These criminals stole millions of dollars from Russian-speaking victims through a complex investment scheme, then tried to exploit them again with false promises of getting their money back," Brooklyn District Attorney Eric Gonzalez said in a statement. He credited the bureau's virtual currency unit and the FBI with uncovering the network's infrastructure.

Shutting down the servers was key to the operation because it disrupted the fraudsters' ability to create new websites and contact victims. "We disabled the back end of the operation," said Assistant District Attorney Alona Katz, who led the investigation, according to Bloomberg.

The operation comes amid an increase in cryptocurrency-related scams across the United States. Americans will report $11.4 billion in crypto fraud losses in 2025, a 22 percent increase from the previous year, according to FBI statistics cited by Bloomberg.