CoinDesk
Brooklyn prosecutors and the FBI seized or disrupted 241 websites and 112 servers tied to a crypto investment scam that allegedly stole tens of millions of dollars from Russian-speaking victims in the U.S. Officials have seized about $300,000 so far, and no arrests were announced.
Why it matters
The three-year investigation found a fraud operation that used Russian-language Facebook ads to draw in victims, then relied on fake advisers to coach them into buying cryptocurrency and sending it to fraudulent trading platforms. When victims tried to withdraw funds, the platforms locked their accounts or demanded more payments for supposed taxes and fees.
The operators then allegedly contacted some victims again with false promises to recover their stolen money. Investigators targeted servers holding victim data and the software used to run the fraud, aiming to make it harder for the operators to quickly launch replacement sites. A previous effort disrupted 400 domains, but new sites kept appearing.
Market impact
The FBI reported that crypto investment scams made up roughly 84% of the $8.65 billion in investment-fraud losses reported in 2025. Across all internet-crime categories, crypto-linked losses totaled $11.37 billion, about 54% of $20.88 billion in overall losses.
Brooklyn authorities are working to recover more funds, and prosecutors said some victims lost their entire life savings. The operation puts pressure on the infrastructure behind the scams, while the scale of reported losses underscores the challenge of protecting investors from fraudulent platforms and follow-on recovery schemes.
Frequently asked questions
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How did the alleged crypto investment scam find victims?
Russian-language Facebook ads promoted investment opportunities. Fake advisers then called victims and coached them to buy cryptocurrency and send it to fraudulent trading platforms.
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What happened when victims tried to withdraw their money?
The platforms allegedly locked victims' accounts or demanded additional payments for supposed taxes and fees.
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Why did investigators seize servers as well as websites?
The servers held victim data and software used to run the fraud. Investigators aimed to make it harder for operators to quickly launch replacement sites.
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How much money have authorities seized so far?
Brooklyn authorities have seized about $300,000 and are working to recover more.
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How significant were crypto scams in FBI-reported fraud losses in 2025?
Crypto investment scams accounted for roughly 84% of the $8.65 billion in investment-fraud losses reported to the FBI in 2025.
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