Brooklyn prosecutors say they have taken down a large part of the online infrastructure behind a cryptocurrency investment scam that allegedly targeted Russian-speaking victims across the United States. The Brooklyn District Attorney’s Virtual Currency Unit said it seized and disrupted 241 web domains and 112 servers in what it described as one of the biggest cyber enforcement actions carried out by a local prosecutor’s office.
According to the district attorney’s office, the alleged scheme operated for more than three years and caused tens of millions of dollars in losses. Investigators said some victims lost their life savings, while roughly $300,000 has been recovered so far as authorities continue efforts to reclaim additional funds.
A broad infrastructure seizure
The district attorney’s office said the action went beyond taking down scam websites. Prosecutors said investigators also seized a cluster of more than 100 cloud-based servers hosted by companies in Eastern Europe and the United States.
Officials said those servers held data used to run the fraudulent sites, including victim information and software tied to the operation. By cutting off access to that infrastructure, prosecutors said they disrupted the tools the scammers relied on to keep the scheme running.
How the alleged scheme worked
Authorities said the operation used Russian-language advertisements on Facebook along with Russian-speaking advisors to attract victims to fake cryptocurrency investment platforms. After victims were persuaded to transfer digital assets, they were allegedly shown additional barriers when they tried to withdraw their money.
Prosecutors said victims were told they needed to send more funds to cover supposed fees and taxes before any withdrawal could be processed. The district attorney’s office also said the same network ran a crypto recovery scam, in which victims were led to believe their assets had been stolen and were then offered false recovery services.
Victims and losses
The district attorney’s office said the scam focused on Russian speakers living in the US. Authorities have not given a full victim count, but said the financial damage reached into the tens of millions of dollars.
Brooklyn District Attorney Eric Gonzalez said the people behind the scheme stole many millions from Russian-speaking victims and then attempted to exploit them again by promising to recover the lost funds. He said scammers operating from abroad should not assume they are out of reach when Brooklyn residents are targeted.
What happens next
Prosecutors said the office is still working to claw back more money for victims beyond the approximately $300,000 already recovered. The latest action also builds on earlier enforcement steps: the district attorney’s office said it had previously seized or disrupted more than 400 related domains linked to cryptocurrency investment fraud.
For now, the confirmed result is a major disruption of the online systems that authorities say supported the alleged scam. The investigation appears to remain active as prosecutors pursue additional asset recovery and further action tied to the network.
Source: dailyhodl.com