Key Takeaways
Bitcoin Magazine reports the Brooklyn DA and FBI dismantled a multinational crypto scam network, seizing 241 fake sites and 112 servers.
According to reporting by Bitcoin Magazine, the Brooklyn District Attorney’s office, in collaboration with the FBI, has dismantled a multinational cryptocurrency scam network that drained tens of millions of dollars from Russian-speaking victims across the United States.
Investigators executed search warrants across three time zones and seized or disrupted 241 scam domains and more than 100 cloud servers hosted by Eastern European and American companies. Brooklyn District Attorney Eric Gonzalez stated that the operation targeted infrastructure holding victim data, site content, and operating software.
The scam lured victims through Russian-language investment advertisements on Facebook. Victims were guided by a Russian-speaking "advisor" to open accounts on fake crypto platforms and purchase digital assets. When attempting to withdraw funds, victims were locked out or demanded to pay bogus fees and taxes, with some losing their life savings. Scammers also posed as recovery services weeks later to target past victims.
The three-year investigation has recovered about $300,000 so far, and prosecutors are working to claw back additional funds.
Source & Fact-Check Note
https://bitcoinmagazine.com/news/brooklyn-da-pulls-plug-on-crypto-scam
