Brooklyn DA and FBI Disrupt 241 Domains in Crypto Scam Probe

The Brooklyn DA’s Office and FBI disrupted 241 domains and seized 112 servers in a crypto-fraud probe targeting Russian-speaking U.S. residents; the DA’s office estimates losses in the tens of millions.

Brooklyn District Attorney Eric Gonzalez announced the operation Wednesday, Oct. 14. His office’s Virtual Currency Unit worked with the FBI during enforcement actions last week that spanned several hours and three time zones. The seized systems held website content, victim information and software used to run the operation. The servers were hosted in the United States and Eastern Europe.

The investigation lasted three years. The Brooklyn DA’s Office said its investigation found that victims often encountered Russian-language ads on Facebook, then received calls from Russian-speaking advisers who directed them to buy cryptocurrency and transfer it to addresses associated with investment platforms. Some people who tried to withdraw funds were locked out or asked to pay fees or taxes. The Brooklyn DA’s Office also found that some victims were later contacted with promises to recover their stolen assets.

The DA’s office said it had seized about $300,000 in stolen funds as of Oct. 14 and was seeking to recover more.