Brooklyn prosecutors, together with FBI, seize and disrupt infrastructure of a transnational crypto scam network
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AT A GLANCE
U.S. prosecutors, with FBI's assistance, cracked down on a transnational crypto scam network, seizing and disrupting more than 240 websites and 112 servers.
Article
[U.S. prosecutors crack down on transnational crypto scam network, with suspected fraud amounting to tens of millions USD]
Alona Katz, head of the Virtual Currency Unit at the Brooklyn District Attorney’s Office in New York, with the assistance of FBI, launched a crackdown on a transnational crypto scam network operating from Eastern Europe, seizing and disrupting the operations of more than 240 scam websites and 112 servers under its control. The network had defrauded Brooklyn residents of tens of millions USD. The operation spanned time zones, but no arrests were made. The group primarily contacted Russian-speaking users through social platforms such as Facebook, posing as immigrants who had achieved success through trading in the United States. It induced victims to first invest several hundred USD, then displayed fictitious profits to encourage them to continue adding funds. The scammers sometimes permitted small withdrawals to create an illusion of legitimacy; when victims sought to withdraw large sums, they demanded hefty fees or simply ceased contact. As of early October, the team was processing the return of approximately 300000 USD to victims of scams in Brooklyn’s Russian-speaking community. Citing FBI data, the report said that reported cryptocurrency scam losses in the United States in 2025 reached 11400000000 USD, approximately 3 times those of 3 years earlier.
Key points
01
Alona Katz, head of the Virtual Currency Unit at the Brooklyn District Attorney’s Office in New York, conducted this operation with FBI's assistance.
02
The operation targeted a transnational crypto scam network operating from Eastern Europe.
03
Law enforcement seized and disrupted the operations of more than 240 scam websites and 112 servers controlled by the network.
04
The network had defrauded Brooklyn residents of tens of millions USD。
05
The operation spanned time zones, but no arrests were made.
06
The group primarily contacted Russian-speaking users through social platforms such as Facebook and used fictitious profits to induce victims to continue adding funds.
07
The scammers sometimes permitted small withdrawals; when victims sought to withdraw large sums, the scammers demanded hefty fees or simply ceased contact.
08
As of early October, the team was processing the return of approximately 300000 USD to victims of scams in Brooklyn’s Russian-speaking community.
09
Citing FBI data, the report said that reported cryptocurrency scam losses in the United States in 2025 reached 11400000000 USD, approximately 3 times those of 3 years earlier.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
These scams first use social platforms to find targets, induce victims to invest several hundred USD, and then build trust through fictitious profit displays and occasional small withdrawals. When victims invest more funds and attempt large withdrawals, the scammers continue charging fees or cease contact. This operation focused on websites and servers supporting the scam.
Why it matters to readers
A large number of scam websites and servers were seized or disrupted, potentially interrupting some scam activity; the return of approximately 300000 USD also directly affects whether victims can recover part of their losses.
Do not treat profits displayed on a platform or a single small withdrawal as proof of safety. If you are asked to pay additional fees before a large withdrawal, be alert to the risk of fraud.
Risks and unknowns
The original text did not provide the prosecutors’ or FBI's original announcement, case number, or names of the entities involved.
The original text states that no one has yet been arrested; whether charges or arrests will follow remains unclear.
Whether the return of approximately 300000 USD has been completed remains unclear.
The specific subsequent disposition of the seized websites and servers remains unclear.
“As of October early” does not specify a year in the original text.
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Related concepts
Scam websites
This term is not in the glossary yet. Browse related concepts in the glossary.
