US Authorities Dismantle Crypto Scam Network That Stole Tens of Millions
Prosecutors in Brooklyn, New York, together with the FBI, disrupted an Eastern European crypto scam network that defrauded Americans—mostly Russian speakers—out of tens of millions of dollars. The operation shut down 241 websites and seized 112 servers located in the US and Eastern Europe, without making any arrests.
Details of the Operation and Outcomes
The operation took place last week and was publicly announced on Wednesday. It led to the shutdown of 241 scam-related websites and seizure of 112 servers hosted by companies in the US and Eastern Europe. The main goal was to disrupt the scammers’ infrastructure, preventing them from creating new websites and contacting victims.
Brooklyn District Attorney Eric Gonzalez stated that the criminals used a sophisticated investment scheme to steal many millions of dollars from Russian-speaking victims and then attempted to defraud them again with false recovery promises. The Virtual Currency Unit of the District Attorney’s Office and the FBI uncovered the network.
Crypto Fraud Rise and Broader Context in the US
Assistant District Attorney Alona Katz emphasized that seizing the servers was crucial to disabling the operation’s backend, significantly hampering the scammers’ activity. This operation occurred amid a growing rise in crypto-related crime across the United States.
According to FBI data cited by media, Americans lost approximately $11.4 billion to crypto fraud in 2025—a 22% increase over the previous year. This highlights the increasing prevalence and impact of such criminal schemes nationwide.
Why it matters
This news is significant as it showcases US law enforcement’s efforts to combat the rising threat of cryptocurrency scams, particularly targeting Russian-speaking victims. The seizure of servers and closure of sites highlights how targeted actions can considerably disrupt criminal networks. The increasing losses from crypto fraud underscore the ongoing need for consistent and large-scale measures to protect investors and digital asset users.
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