Brooklyn District Attorney Eric Gonzalez announced on October 14, 2026, that his office’s Virtual Currency Unit, working with the FBI, has dismantled key infrastructure behind a cryptocurrency investment scam targeting Russian speakers in the United States.
The operation disrupted 241 web domains and 112 servers, described as one of the largest cyber enforcement actions undertaken by a local prosecutor’s office. Servers were hosted by companies in Eastern Europe, including Ukraine, and the United States.
Three-year investigation
The investigation began three years ago after a cluster of Russian-speaking victims in Brooklyn reported similar experiences. Victims responded to Russian-language Facebook advertisements promising investment opportunities, then received calls from individuals posing as “investment advisors” who coached them to create accounts on cryptocurrency platforms and transfer funds to associated wallet addresses.
Victims saw apparent profits on the platforms for weeks or months. Attempts to withdraw funds resulted in locked accounts or demands for additional payments framed as taxes or fees. Data recovered during the operation also revealed a follow-on recovery scam in which the same operators contacted victims weeks later with offers to retrieve the stolen assets.
Scope of the fraud
Prosecutors said the scheme stole many millions of dollars, with some estimates reaching tens of millions. Brooklyn’s large Russian-speaking population meant the borough was disproportionately affected. The office has recovered approximately $300,000 so far and continues efforts to claw back additional funds.
Prior to the server seizures, the Virtual Currency Unit had already disrupted or seized around 400 related domains, but replacement sites continued to appear. The latest action targeted the backend infrastructure holding victim data and the software used to operate the fraud.
No arrests have been announced in connection with the takedown.
