Brooklyn Prosecutors Shut Down 241 Crypto Scam Sites From Eastern Europe

• Law enforcement shut down 241 websites and seized 112 servers linked to an international cryptocurrency fraud network.
• According to investigators, the scammers lured victims through Facebook ads, including Russian-speaking US residents.

The Brooklyn District Attorney’s Office carried out a major operation against an international crypto scam network tied to Eastern Europe. Law enforcement shut down 241 websites and seized 112 servers used by the criminal group. Bloomberg reported this, citing the prosecutor’s office.

The operation was the result of a three-year investigation into fraudulent schemes that cost Americans tens of millions of dollars. No arrests were made during the operation.

Brooklyn District Attorney Eric Gonzalez called it one of the largest cyber takedowns ever carried out by the local prosecutor’s office.

How Did the Crypto Scam Network Operate?

According to investigators, the scammers promoted investment opportunities on Facebook and funneled victims into crypto schemes. Those targeted included Russian-speaking residents of Brooklyn and other parts of the US.

The investigation uncovered cyber infrastructure, including IP addresses in Ukraine and other Eastern European countries. The servers seized by law enforcement were used to run scam websites, store victims’ data, and support the group’s software operations.

The operation was led by the Brooklyn DA’s Virtual Currency Unit in coordination with the New York office of the Federal Bureau of Investigation (FBI). Law enforcement executed search warrants and coordinated actions across three time zones.

According to Assistant District Attorney Alyona Katz, the server seizures cut the group off from key parts of its infrastructure, making it harder to spin up new sites and reach potential victims.

Gonzalez created the specialized Virtual Currency Unit in 2023 to combat cryptocurrency fraud. The unit focused on this case because many of the victims were members of Brooklyn’s Russian-speaking communities.

In June 2024, Katz’s team seized 70 web domains used for fraud that caused $5 million in losses for US residents. Excluding the latest operation, the unit has seized or taken down a total of 400 domains linked to crypto investment scams.

The prosecutor’s office expects the server seizures to disrupt the scam network for a long time by stripping it of the technical foundation for further attacks.

Earlier in the U.S., authorities seized more than 61 million USDT linked to a “romance” scam scheme.

Сообщение Brooklyn Prosecutors Shut Down 241 Crypto Scam Sites From Eastern Europe появились сначала на INCRYPTED.