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      Brooklyn Prosecutor Targets Crypto Scams Linked to $11 Billion in Losses

      In a significant crackdown on cryptocurrency fraud, Brooklyn's Assistant District Attorney Alona Katz, who leads the Virtual Currency Unit (VCU), collaborated with the FBI to disrupt 241 scam domains and 112 servers on October 14, 2026. This operation is part of a three-year investigation into a network of scams primarily targeting Russian-speaking communities, with connections traced back to Eastern Europe, particularly Ukraine.

      The FBI's Internet Crime Complaint Center reported that Americans lost approximately $11.366 billion to crypto-related fraud in 2025, marking a 22% increase from the previous year. Investment scams accounted for the majority of these losses, with victims aged 60 and older reporting nearly $4.4 billion in damages. The scams often began with Russian-language advertisements on social media, leading victims to fraudulent investment platforms, followed by recovery scams that exploited their desperation to regain lost funds.

      Since its establishment in 2023, the VCU has been focused on addressing the rise of crypto fraud in Brooklyn's sizable Russian-speaking population. The unit has successfully disrupted over 400 domains linked to fraudulent activities, with the recent operation representing a substantial portion of that total. Despite the significant efforts, no arrests have been reported, and prosecutors have only managed to recover about $300,000 for victims against estimated losses in the tens of millions. Katz is advocating for stronger state legislation to enhance the prosecution of such scams, which often involve complex cross-border issues.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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