US authorities dismantle crypto scam network that stole tens of millions
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
US prosecutors in Brooklyn, in collaboration with the FBI, dismantled an Eastern European cryptocurrency scam network accused of stealing tens of millions of dollars from Americans, mainly Russian speakers. The operation shut down 241 websites and seized 112 servers, disrupting the scammers’ infrastructure. No arrests were made, but officials emphasized the importance of seizing the servers to disable the scam network.
Why it matters
The source highlights that this action is significant amid a broader increase in cryptocurrency-related fraud in the US. Disrupting the scam network helps prevent further victimization and reduces the scammers’ ability to target new victims. The source does not elaborate beyond these points.
Key context
The scam targeted Russian-speaking Americans with an elaborate investment scheme, followed by false recovery promises. The Brooklyn District Attorney’s Virtual Currency Unit and the FBI uncovered the network’s backend infrastructure. Cryptocurrency fraud losses in the US reportedly rose 22% to $11.4 billion in 2025, indicating a growing problem in this domain.
Key numbers and entities
The Brooklyn District Attorney’s Office, FBI, Brooklyn District Attorney Eric Gonzalez, and Assistant District Attorney Alona Katz are involved. The operation resulted in the shutdown of 241 websites and seizure of 112 servers. Americans lost $11.4 billion to crypto fraud in 2025, up 22% from the previous year.
What remains unclear
The source does not specify the identities of the perpetrators, how exactly the scam operated beyond the investment scheme, or if further legal actions will follow. It is also unclear why no arrests were made during the disruption.