Brooklyn prosecutors shut 112 servers tied to crypto scam that targeted victims twice
A cross-border investigation led by the Brooklyn District Attorney’s Office has shut down 112 servers and 241 websites tied to a crypto investment scam that prosecutors said stole tens of millions of dollars from victims across the United States. The case, announced on Oct. 14 with assistance from the Federal Bureau of Investigation, points to a scheme that first targeted Russian-speaking people in the U.S. with fake investment opportunities and then returned weeks later with a second pitch: pay more money to recover the lost assets. According to prosecutors, the operation began with Russian-language Facebook ads promoting crypto investments. Victims were then contacted by people posing as Russian-speaking investment advisers, directed to phishing trading sites, and persuaded to buy digital assets and send them to wallet addresses controlled by the scam. When victims later tried to withdraw funds, some accounts were frozen, while others were told to pay extra fees or taxes. Server data cited by the DA’s office showed the same group kept victims’ contact details and used them for follow-on “asset recovery” fraud. Investigators estimate total losses in the tens of millions of dollars, but said only about $300,000 has been seized so far. Authorities have not identified suspects, announced arrests, or provided a timetable for compensation.
