- The Brooklyn District Attorney’s Office shut down 241 websites and seized 112 servers linked to an international cryptocurrency fraud network tied to Eastern Europe.
- The operation followed a three-year investigation into schemes that cost Americans tens of millions of dollars; no arrests were made.
- Investigators said the network used Facebook ads to target victims, including Russian-speaking residents of Brooklyn and elsewhere in the United States.
The Brooklyn District Attorney’s Office shut down 241 websites and seized 112 servers after a three-year investigation into an international cryptocurrency fraud network tied to Eastern Europe. The operation disrupted infrastructure used in schemes that cost Americans tens of millions of dollars, although authorities made no arrests.
Bloomberg reported the operation, citing the prosecutor’s office. Brooklyn District Attorney Eric Gonzalez described it as one of the largest cyber takedowns ever conducted by the local prosecutor’s office.
Investigators detail Facebook recruitment and server network
According to investigators, the scammers advertised investment opportunities on Facebook and directed victims into cryptocurrency schemes. Their targets included Russian-speaking residents of Brooklyn and other parts of the United States.
The investigation identified cyber infrastructure that included IP addresses in Ukraine and other Eastern European countries. Authorities said the seized servers operated fraudulent websites, stored victims’ data and supported the group’s software operations.
The Brooklyn District Attorney’s Virtual Currency Unit led the operation in coordination with the New York office of the Federal Bureau of Investigation. Law enforcement executed search warrants and coordinated actions across three time zones.
Assistant District Attorney Alyona Katz said seizing the servers denied the group access to key infrastructure, making it more difficult to create new websites and reach potential victims.
Virtual Currency Unit expands domain seizures
Gonzalez established the specialized Virtual Currency Unit in 2023 to combat cryptocurrency fraud. The unit prioritized this investigation because many of the victims belonged to Brooklyn’s Russian-speaking communities.
In June 2024, Katz’s team seized 70 web domains used in fraud that caused $5 million in losses for U.S. residents. Excluding the latest operation, the unit has seized or taken down 400 domains linked to cryptocurrency investment scams.
The prosecutor’s office expects the server seizures to cause a prolonged disruption by depriving the network of the technical foundation needed for further attacks.
In an earlier U.S. case, authorities seized more than 61 million USDT linked to a “romance” scam scheme.
Source: Incrypted
