Brooklyn Prosecutors Target Crypto Scam Network, Seizing 112 Servers and 241 Domains

In a major crackdown on cryptocurrency fraud, Brooklyn prosecutors have seized 112 servers and 241 web domains associated with a scam that primarily targeted Russian-speaking communities across the United States. This operation, carried out by the Brooklyn District Attorney’s Virtual Currency Unit (VCU), is one of the largest local cyber enforcement actions to date.

The investigation, which spanned over three years, revealed a network that utilized Russian-language Facebook ads to lure victims into fake investment platforms. Once victims transferred their cryptocurrency, they were often told they needed to pay additional fees and taxes to withdraw their funds. The scammers also operated a recovery scheme, misleading victims into believing their digital assets had been stolen and promising to recover them for a fee.

According to the Brooklyn District Attorney Eric Gonzalez, the operation has had a significant impact on the victims, many of whom lost life savings. While tens of millions of dollars were lost to the scam, approximately $300,000 has been recovered so far. Gonzalez stated, “When scammers halfway around the world target Brooklyn residents, they should know they are not beyond our reach.”

The VCU, established in 2023, aims to combat the rise in crypto fraud affecting the borough's sizable Russian-speaking population. Since its inception, the unit has disrupted over 400 domains related to cryptocurrency fraud. This latest operation is part of a broader effort to address the growing issue of crypto scams, which accounted for over $11 billion in losses nationwide in 2025, according to the FBI’s Internet Crime Complaint Center.

As the investigation continues, the VCU is advocating for stronger state legislation to enhance the prosecution of crypto scams and protect vulnerable communities from such fraudulent activities.