Brooklyn DA shuts 241 websites linked to crypto fraud network
Authorities seized 112 servers in a probe into scams targeting Russian-speaking Americans; no arrests were made.
Brooklyn prosecutors shut down 241 websites and seized 112 servers linked to an alleged cryptocurrency fraud network, Bloomberg reported on October 14. Authorities said the scams cost Americans tens of millions of dollars.
The operation took place the previous week after a three-year investigation. No arrests were made. The servers were hosted by companies in Eastern Europe and the US.
The Brooklyn District Attorney’s Virtual Currency Unit worked with the FBI’s New York office. Investigators traced infrastructure to Ukraine and elsewhere in Eastern Europe and executed search warrants across three time zones.
Many victims were Russian-speaking residents of Brooklyn and other US communities who responded to Facebook investment ads, according to investigators. Prosecutors said disabling the servers cut access to victim records, website data and software used by the operation.
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District Attorney Eric Gonzalez established the unit in 2023. Led by Assistant District Attorney Alona Katz, it seized 70 domains in June 2024 linked to $5 million in US losses. Before the latest action, it had seized or disrupted 400 domains tied to crypto investment fraud.
The FBI recorded $11.4 billion in reported US cryptocurrency fraud losses in 2025, a 22% annual increase, Bloomberg reported. More than 18,000 people reported losses exceeding $100,000.