Brooklyn Prosecutors and FBI Dismantle Crypto Fraud Network That Targeted Russian Speakers

The scheme allegedly stole tens of millions of dollars through Russian-language Facebook ads and fake advisers, then targeted victims a second time with bogus offers to recover their money.

Brooklyn prosecutors and the FBI have seized or disrupted 241 scam websites and 112 servers tied to a cryptocurrency investment fraud that allegedly stole tens of millions of dollars from Russian-speaking victims in the United States.

The enforcement operation, carried out last week, capped a three-year investigation into a network that relied on online infrastructure and IP addresses in Ukraine and other Eastern European countries, Brooklyn District Attorney Eric Gonzalez said. No arrests were announced.

The action was detailed in a press release published Oct. 14 by the District Attorney's office, which described the effort as the dismantling of a multinational crypto investment scam's infrastructure.

How the scheme worked

Investigators said the scammers drew victims in through Russian-language advertisements on Facebook that promised investment opportunities. Fake advisers then called those who responded and coached them to buy cryptocurrency and send the funds to fraudulent trading platforms.

When victims tried to withdraw their money, the platforms locked their accounts or demanded additional payments for supposed taxes and fees.

The fraudsters then went after the same victims a second time. They “tried to exploit them again with false promises to recover their money,” Gonzalez said. Data recovered during the investigation showed the operators contacted victims a few weeks after the initial fraud, offering to retrieve the stolen funds.

Targeting servers, not just domains

The District Attorney's Virtual Currency Unit had previously seized or disrupted 400 domains tied to crypto investment fraud, but replacement sites kept appearing as quickly as they were taken down.

This time, investigators targeted the servers themselves — hosted by companies in Eastern Europe and the United States — that held victim data and the software used to run the fraud. The goal was to prevent the operators from quickly launching new sites.

Crypto scams dominate FBI fraud-loss figures

The case comes as crypto investment scams accounted for roughly 84% of the $8.65 billion in investment-fraud losses reported to the FBI in 2025, according to the bureau's annual report.

Across all internet-crime categories, crypto-linked losses totaled $11.37 billion, approximately 54% of the $20.88 billion reported overall. Both percentages are calculated from the FBI's totals.

The Brooklyn operation shows how those losses accumulate at the level of a single network: advertisements on Facebook, fake advisers, accounts locked at the point of withdrawal, and repeat contact with the same victims holding out promises of recovered funds.

Recoveries continue

Brooklyn authorities have seized about $300,000 so far and are working to recover more. Prosecutors said some victims lost their entire life savings.

The roughly $300,000 seized to date is a small fraction of the tens of millions of dollars the scheme is alleged to have stolen, and with no arrests announced, both the recovery effort and the question of any future charges remain open.

This article is based on reporting originally published by CoinDesk on Oct. 15, 2026.