A crypto scam network targeted by Brooklyn prosecutors and the FBI was found to be contacting victims again weeks after they lost money, trying to trap them a second time with promises of recovering their stolen assets.
According to CoinDesk, which reported Brooklyn District Attorney Eric Gonzalez’s announcement, 241 websites and 112 servers were seized or taken offline in an operation last week following a three-year investigation. Prosecutors allege that the network, which targeted Russian-speaking people in the United States, stole tens of millions of dollars. No arrests connected to the operation were announced.
First an investment, then a promise to recover the money
The network reached victims through Russian-language Facebook ads promoting investment opportunities. Then, people posing as advisers directed victims to buy cryptocurrency and send the assets to fake trading platforms.
Those who tried to withdraw their money found their accounts locked or were told they had to pay supposed taxes and fees. Victims were thus asked to pay again to access the money they had invested.
Data gathered during the investigation showed that the scammers contacted the same people again several weeks after the initial incident. This time, the offer was not to invest, but to recover the stolen money. According to the district attorney’s office, the network tried to exploit victims again with promises of recovery.
Servers targeted after websites reappeared
The district attorney’s virtual currency unit had previously seized or taken offline about 400 domain names linked to crypto investment scams. But new websites continued to appear in their place.
The latest operation targeted servers hosting victims’ data and the software running the fake platforms. The goal was to make it harder for the network to quickly resume operations by setting up new websites.
Brooklyn officials have seized about $300,000 so far and are continuing their efforts to recover additional funds. Prosecutors said some victims lost all their savings.
Crypto accounts for a large share of losses reported to the FBI
According to the FBI’s 2025 annual report, crypto investment scams accounted for about 84 percent of the $8.65 billion in investment fraud losses reported to the agency. Across all categories of internet crime, crypto-related losses reached $11.37 billion, or about 54 percent of total losses.
Not investment advice.