Investigators found that the schemes often reached victims through Facebook advertisements promoting investment opportunities.
Wed 14 Oct 2026 · 13:32 EDT · 1 min read
In Politics
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The Brooklyn District Attorney’s office has dismantled key parts of a crypto scam network linked to Eastern Europe, shutting down 241 websites and seizing 112 computer servers in a coordinated operation last week, according to Bloomberg.
The effort followed a three-year investigation into fraud schemes that stole tens of millions of dollars from US residents, though no arrests were made.
According to investigators, the network targeted victims through fraudulent investment offers, with many of those affected being Russian-speaking residents of Brooklyn and elsewhere in the US who responded to Facebook ads.
The Brooklyn District Attorney’s Virtual Currency Unit led the operation with the FBI’s New York field office, tracing stolen funds and identifying infrastructure linked to the alleged fraud. Prosecutors said the server seizures disabled the network’s access to website data, victim information and the software used to run its schemes.
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The operation comes as reported US losses from crypto fraud continue to rise. The FBI recorded $11.4 billion in losses in 2025, up 22% year-over-year, with more than 18,000 people reporting losses above $100,000.
Disclosure: This article was edited by John Chen. For more information on how we create and review content, see our Editorial Policy.