How Brooklyn prosecutors and the FBI took down a massive crypto fraud network targeting Russian speakers
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Summary
Brooklyn prosecutors and the FBI seized or disrupted 241 websites and 112 servers linked to a crypto fraud network targeting Russian speakers in the US. The scheme allegedly stole tens of millions of dollars through Russian-language Facebook ads and fake advisers who pushed victims to invest in fraudulent cryptocurrency platforms. Officials have so far seized approximately $300,000 from the scammers.
Why it matters
The source highlights that crypto scams represented roughly 84% of the $8.65 billion in investment-fraud losses reported to the FBI in 2025, underscoring the significant impact of such frauds on victims. The operation aimed to stop the fraudsters from quickly replacing their scam sites by targeting the underlying servers rather than just domains.
Key context
The investigation spanned three years and revealed the fraud network used online infrastructure and IP addresses located in Ukraine and other Eastern European countries. Previous efforts to disrupt the network only targeted domains, which were swiftly replaced, prompting a shift to seizing servers hosting victim data and the scam software. The scammers also attempted to exploit victims a second time with false recovery offers.
Key numbers and entities
Brooklyn prosecutors and the FBI disrupted 241 scam websites and 112 servers. The estimated losses to victims were in the tens of millions of dollars while about $300,000 has been seized. Crypto investment scams accounted for roughly 84% of the $8.65 billion investment-fraud losses reported to the FBI in 2025; overall internet crime losses linked to crypto were $11.37 billion out of $20.88 billion total. Brooklyn District Attorney Eric Gonzalez led the announcement.
What remains unclear
The source does not specify whether any arrests have been or will be made in connection with the crypto fraud network. It is also unknown how much of the stolen funds might ultimately be recovered or how many victims were affected in total.