U.S. prosecutors in Brooklyn, working with the FBI, have moved against a cross-border crypto fraud network operating from Eastern Europe, according to Bloomberg. The operation targeted more than 240 scam websites and 112 servers linked to the group. Authorities said the network defrauded Brooklyn residents of tens of millions of dollars, though no arrests were made in the latest action.
The scheme allegedly focused on Russian-speaking users through social platforms including Facebook. Scammers reportedly posed as immigrants who had found trading success in the United States, persuaded victims to start with a few hundred dollars, then showed fake profits to push for larger deposits. In some cases, victims were allowed to withdraw small sums to build trust. When they later tried to pull out larger amounts, they were hit with steep fees or cut off entirely.
As of early October, officials were processing about $300,000 in returns for victims in Brooklyn’s Russian-speaking community. Bloomberg, citing FBI data, also said reported U.S. crypto scam losses reached $11.4 billion in 2025, roughly triple the level from three years earlier.
U.S. prosecutors in Brooklyn, with assistance from the Federal Bureau of Investigation, have taken action against a cross-border crypto scam network operating out of Eastern Europe, Bloomberg reported. The effort was led by Alona Katz, head of the virtual currency unit at the Brooklyn District Attorney’s Office in New York.
The operation involved the seizure and disruption of more than 240 scam websites and 112 servers controlled by the network. Authorities said the group had defrauded Brooklyn residents of tens of millions of dollars. The action stretched across three time zones, but no arrests were made.
The group mainly approached Russian-speaking users through social platforms including Facebook. According to the report, the scammers presented themselves as immigrants who had become successful in trading in the United States. They persuaded victims to begin with a few hundred dollars, then displayed fake profits to encourage additional deposits.
In some cases, victims were allowed to make small withdrawals to create a sense of legitimacy. When they later tried to withdraw larger sums, the scammers either demanded high fees or disappeared.
As of early October, the team was processing about $300,000 in returns for victims in Brooklyn’s Russian-speaking community. Bloomberg, citing FBI data, said reported crypto scam losses in the United States reached $11.4 billion in 2025, about three times the level reported three years earlier.
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