Brooklyn prosecutors disrupt crypto scam network targeting U.S. victims

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Brooklyn crypto scam busted

Highlights

Brooklyn prosecutors and the FBI disrupted an Eastern European crypto scam network, shutting down 241 websites and seizing 112 servers with no arrests made.
Americans reported $11.4 billion in cryptocurrency fraud losses in 2025, a 22% increase from the previous year, according to the FBI.
Enforcement agencies now prioritize targeting technical infrastructure like websites and servers to quickly disrupt cross-border crypto scams even without access to organizers.

Enforcement action targets scam infrastructure

As reported by Cointelegraph, citing the Brooklyn District Attorney’s Office, prosecutors in Brooklyn working with the Federal Bureau of Investigation have disrupted an Eastern European cryptocurrency scam network that authorities say stole tens of millions of dollars from Americans. The action, carried out last week and announced on Wednesday, shuts down 241 websites and seizes 112 servers hosted by companies in Eastern Europe and the U.S., while no arrests are made.

Brooklyn District Attorney Eric Gonzalez says in a statement that the group used an elaborate investment scheme to defraud Russian-speaking victims and then tried to exploit them again with false promises to recover their money. He credits the office’s Virtual Currency Unit and the FBI with uncovering the network’s infrastructure.

Assistant District Attorney Alona Katz, who leads the investigation, says disabling the servers is central to the operation because it limits the scammers’ ability to create new websites and contact victims. She says the action disables the back end of the operation.

Crypto fraud losses continue to climb

The crackdown comes as cryptocurrency-related fraud is rising across the U.S. Americans report $11.4 billion in crypto fraud losses in 2025, up 22% from the previous year, according to FBI figures cited in the source text.

The case highlights how enforcement agencies are increasingly focusing on technical infrastructure, not only individual suspects, when tackling cross-border crypto scams. By targeting websites and servers, authorities aim to disrupt operations quickly even when the alleged organizers remain outside immediate reach.

Our earlier article on crypto IRAs explained how U.S. investors can gain long-term exposure to assets like Bitcoin and Ethereum inside tax-advantaged retirement accounts, while still facing volatility, custody, and fee risks. It also compared major providers and stressed due diligence on security, trading costs, and withdrawal rules—considerations that matter as crypto’s footprint grows and the threat of scams remains elevated.

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