Brooklyn prosecutors and the FBI successfully shut down 241 websites and seized 112 servers linked to an alleged Eastern European crypto scam network. According to the Brooklyn District Attorney's Office announcement on October 14, investigators executed multiple search warrants and enforcement actions across three time zones over several hours. The operation, which targeted Russian-speaking victims across the U.S., was led by the Brooklyn DA's Virtual Currency Unit working alongside the FBI's New York field office. Law enforcement traced the network's cyber infrastructure and internet protocol addresses to Ukraine and other Eastern European countries. District Attorney Eric Gonzalez emphasized the scale of the disruption, stating that "by disrupting more than 100 servers and hundreds of fraudulent websites, we have struck at the heart of this criminal enterprise and made it far harder for these scammers to victimize others."
The network allegedly stole tens of millions of dollars from Americans over several years, with investigators seizing approximately $300,000 in stolen funds so far. As reported by the Brooklyn District Attorney's Office, "It is estimated that tens of millions of dollars were stolen in the course of the scheme, with some victims losing their entire life savings. The DA's Office has been able to seize about $300,000 in stolen funds so far and is working to claw back more." The district attorney's office noted that before this action, their Virtual Currency Unit had already seized or disrupted 400 domains associated with cryptocurrency investment fraud. The seized systems held website content, victim information, and software used to run the operation. According to the latest reports, some victims lost their life savings in the scheme, highlighting the devastating impact on the Russian-speaking community. Among the victims, more than 18,000 reported that their individual losses topped $100,000.
District Attorney Eric Gonzalez explained that the operators stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then exploited them again with false promises to recover their money. According to the district attorney's office, the scheme began with Russian-language Facebook ads promising investment opportunities. Victims who responded got a call from a Russian-speaking "investment advisor" who coached them through opening an account on a crypto platform and helped them buy cryptocurrency and send it to addresses tied to that platform. Weeks or months later, victims who tried to withdraw found their accounts locked or were told to pay additional fees and taxes before they could touch their money. Data from the seized servers showed that the same group also ran a recovery scam, contacting victims again a few weeks after the initial theft, promising to retrieve their stolen crypto. The investigation identified a consistent pattern where victims responded to Facebook ads in Russian for investment opportunities and received calls from "investment advisors" who helped them create accounts with crypto investment platforms.
This operation represents part of ongoing efforts by US agencies to combat cryptocurrency fraud. According to Coinbase's disclosure on October 13, the exchange participated in a West African scam operation involving the Justice Department's Scam Center Strike Force and the UK's National Crime Agency. Americans reported $11.4 billion in cryptocurrency fraud losses during 2025, up 22% from the previous year, according to FBI figures. The FBI's official remission program has used more than $40 million in forfeited assets to provide compensation to eligible OneCoin victims. Brooklyn's extensive Russian population made the city a disproportionate target for this particular scam operation. Brooklyn District Attorney Eric Gonzalez created the Virtual Currency Unit in 2023 specifically to address crypto fraud targeting Brooklyn's large Russian-speaking communities, with a June 2024 action resulting in the seizure of 70 web domains that scammers had used to drain $5 million from U.S. residents. The Brooklyn operation comes amid broader US efforts, including the Justice Department's September seizure of $52 million in cryptocurrency during an action targeting Chinese-language marketplace Xinbi Guarantee.
