Prosecutors in Brooklyn, New York, in coordination with the Federal Bureau of Investigation, have dismantled an Eastern European cryptocurrency scam network. The operation targeted fraudulent investment schemes that primarily affected Russian-speaking Americans.
During the operation, authorities shut down 241 websites and seized 112 servers. These servers were hosted by various companies located in the United States and Eastern Europe. The seizure effectively disabled the infrastructure used by the criminals to manage their operations and contact victims.
According to the Brooklyn District Attorney’s Office, the scammers stole tens of millions of dollars. The perpetrators also attempted to defraud victims a second time by offering false promises to recover lost funds. No arrests have been reported in connection with this action.
The investigation was led by the Virtual Currency Unit of the Brooklyn District Attorney’s Office alongside the FBI. Officials noted that the disruption of the back-end infrastructure prevents the group from launching new fraudulent websites.
This enforcement action follows a broader trend of rising digital asset fraud in the United States. FBI data indicates that Americans reported losses totaling $11.4 billion due to cryptocurrency-related scams in 2025, representing a 22% increase compared to the previous year.
