Brooklyn DA Dismantles Multinational Crypto Scam Network

The Brooklyn District Attorney's office has dismantled a multinational cryptocurrency scam that defrauded Russian-speaking victims in the U.S. of tens of millions of dollars. Collaborating with the FBI, investigators executed search warrants across three time zones, seizing or disrupting 241 scam domains and over 100 cloud servers from Eastern European and American companies. These servers contained victim data, site content, and operational software. Brooklyn District Attorney Eric Gonzalez stated that the Virtual Currency Unit identified the fraud, tracked the stolen cryptocurrency, and uncovered the infrastructure behind the operation. The scam lured victims through Russian-language investment ads on Facebook, where a Russian-speaking 'advisor' guided them to open accounts on a fake crypto platform. Victims faced difficulties withdrawing funds, encountering bogus fees and taxes. Many lost their life savings, and scammers later posed as recovery services to solicit more money. The unit has previously taken down 400 scam domains, but new ones continued to emerge. Disrupting the servers hampers the scammers' ability to quickly launch new sites or contact past victims. The three-year investigation has recovered approximately 300000 dollars, with efforts ongoing to recover more.

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