Brooklyn Prosecutors Disrupt Crypto Scam Network
Brooklyn prosecutors and the FBI disrupted an Eastern European crypto scam accused of stealing tens of millions of dollars from mostly Russian-speaking Americans and seized 112 servers.
Brooklyn prosecutors and the FBI disrupted an Eastern European cryptocurrency scam network accused of stealing tens of millions of dollars from Americans, primarily Russian speakers. Authorities shut down 241 websites and seized 112 servers hosted by companies in the United States and Eastern Europe, according to the Brooklyn District Attorney’s Office.
The operation took place last week and was announced Wednesday. No arrests were made.
Investigators identified investment schemes that allegedly persuaded victims to send money in cryptocurrency. The network then contacted some victims again with false offers to recover their losses, seeking additional payments.
The seized servers supported the websites and communications used by the network, prosecutors said. Taking control of the servers disrupted the suspects’ ability to create new websites and contact victims.
“We disabled the back end of the operation,” Assistant District Attorney Alona Katz, who led the investigation, said in a statement.
Brooklyn District Attorney Eric Gonzalez described the losses as “many millions of dollars” and credited the office’s Virtual Currency Unit and the FBI with identifying the network’s infrastructure.
The FBI reported that Americans lost $11.4 billion to cryptocurrency-related fraud in 2025, a 22% increase from the previous year.
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