Brooklyn Prosecutors Disrupt Crypto Network, Target More Than 240 Sites

Brooklyn prosecutors and the FBI disrupted an Eastern Europe-based crypto fraud network accused of taking tens of millions of dollars from Brooklyn residents, targeting more than 240 websites and 112 servers. No arrests were made, and the operation spanned three time zones.

Prosecutors said the network used social media, including Facebook, to approach Russian-speaking users. Its members allegedly posed as immigrants who had succeeded through trading in the United States, persuaded victims to start with hundreds of dollars and displayed fake profits to encourage larger deposits.

Some victims were allowed to make small withdrawals, prosecutors said. When they sought to withdraw larger amounts, the scammers allegedly demanded high fees or stopped responding.

As of early October, prosecutors were working to return about $300,000 to victims in Brooklyn’s Russian-speaking community. Reported U.S. cryptocurrency scam losses reached $11.4 billion in 2025, about three times the level three years earlier.