Federal agents and Brooklyn prosecutors say they have disrupted the online infrastructure behind a multinational crypto investment fraud that targeted Russian-speaking people in the United States. Investigators said the operation resulted in the seizure or disruption of 241 web domains and 112 servers tied to the scheme.
The case was handled by Brooklyn’s Virtual Currency Unit alongside the FBI after a three-year investigation. Prosecutors said the fraud hit Russian-speaking Americans, with Brooklyn’s large Russian-speaking community affected disproportionately.
How the scheme allegedly worked
According to prosecutors, the scam began with Facebook advertisements aimed at Russian-speaking users. Victims were then connected with supposed investment advisors who guided them through opening accounts on what appeared to be legitimate crypto investment platforms.
Investigators said victims were told to buy cryptocurrency and send it to wallet addresses associated with those platforms. When people later tried to withdraw their funds, sometimes after waiting weeks or months, they were unable to do so or were told they needed to pay extra fees or taxes before any money could be released.
A second fraud followed the first
Prosecutors said the operation did not always end with the initial theft. In some cases, the same network allegedly approached victims again through a recovery scam.
That follow-up scheme promised to help retrieve assets lost in the original fraud. Authorities said those offers appeared a few weeks after the initial scam, adding another layer of losses for people who had already been deceived.
Scale of the takedown
The enforcement action focused on the digital backbone of the fraud rather than on a public announcement of arrests. Authorities said they dismantled or disrupted 241 domains and 112 servers used to support the scheme’s online presence and operations.
Brooklyn prosecutors estimate that the network stole tens of millions of dollars from victims. So far, about $300,000 in allegedly stolen funds has been seized, and officials said efforts to recover additional assets are still underway.
What comes next
The announced takedown removes a large part of the infrastructure investigators say was used to attract victims and process the fraud. It also marks the latest step in a three-year inquiry by the Brooklyn District Attorney’s office and the FBI.
For now, the main confirmed next step is continued asset recovery. Prosecutors said they are still working to seize more stolen funds as the broader investigation proceeds.
Source: decrypt.co