According to Mars Finance, citing CryptoBriefing, the Virtual Currency Unit (VCU) led by Assistant District Attorney Alona Katz of the Brooklyn District Attorney’s Office, in collaboration with the FBI’s New York office, conducted a joint operation that seized or shut down 241 fraudulent domains and 112 servers. This operation marks the culmination of a three-year investigation into an international cryptocurrency investment scam network. The network primarily targeted Russian-speaking communities, luring victims to fake crypto investment platforms through Russian-language advertisements on Facebook, then perpetrating a second scam under the guise of “recovering lost funds.” Investigators estimate total losses in the tens of millions of dollars, with some victims losing their entire life savings. Prosecutors have so far recovered approximately $300,000 for victims, and no arrests have been reported in connection with this operation. The FBI’s 2025 Internet Crime Report revealed that losses related to cryptocurrency fraud reached $11.366 billion in 2025, a 22% increase from the previous year. Cryptocurrency fraud accounted for more than half of all internet crime losses in 2025.
Brooklyn Prosecutors and FBI Shut Down 241 Crypto Scam Domains
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Summary
Brooklyn prosecutors and the FBI have shut down 241 crypto scam domains and 112 servers following a three-year investigation into an international investment fraud scheme. The operation used Facebook ads to lure Russian-speaking victims to fake platforms, with some losing their entire savings. Authorities have recovered approximately $300,000 for victims, but no arrests have been made. The FBI’s 2025 Internet Crime Report reveals that losses from crypto market fraud reached $11.66 billion, a 22% increase from 2024. The Crypto Fear and Greed Index remains volatile amid rising scam activity.
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