A crypto fraud network accused of stealing tens of millions of dollars from Russian-speaking victims in the United States had 241 websites and 112 servers seized or disrupted by Brooklyn prosecutors and the FBI. The operation was announced on October 14, 2026.
Key takeaways
- Investigators targeted servers after replacement scam sites kept appearing.
- Victims faced fake investment pitches followed by fraudulent recovery offers.
- Authorities have seized about $300,000 in the case.
CoinDesk reported that the operation followed a three-year investigation. Cointelegraph reported that the servers were hosted by companies in Eastern Europe and the United States, and that seizing them disrupted the scammers’ ability to launch websites and contact victims.
How the crypto fraud network targeted Russian speakers
The alleged scheme used Russian-language Facebook ads promoting investment opportunities to draw people into fraudulent trading platforms. Fake advisers called prospective victims, guiding them through buying cryptocurrency and transferring it to those platforms.
Attempts to take money out brought a different response: the platforms froze accounts or demanded further payments for supposed taxes and fees. Prosecutors said some victims lost their entire life savings.
The exploitation did not end with the initial loss. Recovered data showed that scammers approached victims again a few weeks later, offering to retrieve the stolen funds.
Brooklyn District Attorney Eric Gonzalez said the scammers “tried to exploit them again with false promises to recover their money.”
Investigators moved beyond shutting down domains
Investigators targeted servers holding victim information and the software behind the crypto fraud network to stop its operators from quickly creating replacement websites. Earlier action against domains had not prevented new sites from appearing.
The Brooklyn District Attorney’s Office’s Virtual Currency Unit had previously seized or disrupted 400 domains associated with cryptocurrency investment fraud. According to Gonzalez, the probe tracked down online infrastructure and IP addresses located in Ukraine and other Eastern European nations.
The server operation extended to hosting companies in both Eastern Europe and the United States.
Crypto accounted for most reported investment-fraud losses in 2025
Of the $8.65 billion in investment-fraud losses that the FBI logged in 2025, cryptocurrency scams accounted for roughly 84% of that total. That share is calculated from the bureau’s annual-report totals.
Across all categories of internet crime, crypto-linked losses reached $11.37 billion in 2025. That was approximately 54% of the $20.88 billion in total reported losses, also calculated from FBI figures.
About $300,000 seized; no arrests announced
Brooklyn authorities have seized approximately $300,000 and are working to recover additional funds. The alleged theft attributed to the network totals tens of millions of dollars.
No arrests have been announced following the operation.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.