Brooklyn prosecutors and the FBI have shut down 241 websites and seized 112 servers linked to an alleged Eastern European crypto scam network accused of stealing tens of millions of dollars from Americans.
Summary
- 241 websites and 112 servers were disrupted during an operation carried out last week.
- Prosecutors said the network targeted Russian-speaking Americans through fake investment offers and recovery promises.
- About $300,000 in stolen funds has been seized, according to the district attorney’s office.
- No arrests were made during the operation, which followed a three-year investigation.
The Brooklyn District Attorney’s Office announced on Oct. 14 that its Virtual Currency Unit had worked with the FBI to disable the systems supporting the alleged fraud, including servers hosted by companies in Eastern Europe and the United States.
According to the announcement, investigators executed multiple search warrants and other enforcement actions across three time zones over several hours. Prosecutors said the seized systems held website content, victim information, and software used to run the operation.
Crypto scam crackdown targets the systems behind replacement websites
Before the latest action, the Virtual Currency Unit had already seized or disrupted 400 domains associated with cryptocurrency investment fraud, the office said. Although taking websites offline helped warn potential victims, prosecutors found that replacement sites appeared quickly.
By targeting the servers supporting the network, investigators sought to prevent operators from rapidly rebuilding their websites and contacting people they had already deceived, according to the announcement.
Assistant District Attorney Alona Katz, who led the investigation, described the effect of the server seizures in comments reported by Bloomberg:
“We disabled the back end of the operation.”
Bloomberg reported that the network was centered in Eastern Europe and had taken tens of millions of dollars from Americans over several years. The district attorney’s office said about $300,000 in stolen funds had been seized so far, with investigators working to recover more.
Russian-speaking victims faced investment and recovery schemes
For victims, the alleged fraud extended beyond the initial investment loss. District Attorney Eric Gonzalez said the operators later approached people with false offers to retrieve their stolen cryptocurrency.
“These criminals stole many millions of dollars from Russian-speaking victims through an elaborate investment scheme, then tried to exploit them again with false promises to recover their money,” Gonzalez said.
According to prosecutors, victims commonly entered the scheme through Russian-language Facebook advertisements. People responding to the ads received calls from purported investment advisers who spoke Russian and helped them open accounts on cryptocurrency websites.
Under the advisers’ instructions, victims purchased cryptocurrency and transferred it to addresses connected to the platforms, the office said. When they tried to withdraw after weeks or months, prosecutors said they were locked out or told to pay additional fees and taxes.
Data recovered during the investigation showed that scammers contacted victims again a few weeks after the initial deception, promising to recover the assets, according to the announcement.
Brooklyn’s separate Coinbase case produced a prison sentence
In another case investigated by the same unit, crypto.news reported on Sept. 24 that Ronald Spektor had received a four-to-12-year prison sentence for stealing nearly $16 million from approximately 100 Coinbase users.
According to prosecutors, the 23-year-old Brooklyn resident pretended to represent Coinbase and warned customers that hackers threatened their accounts. Victims were persuaded to transfer cryptocurrency into supposedly secure wallets that he could access, the office said.
Spektor pleaded guilty on Sept. 2 to all 31 counts in his indictment, including first-degree money laundering and grand larceny, according to the prosecution announcement cited in the report.
At the Sept. 23 sentencing, Brooklyn Supreme Court Justice Danny Chun ordered him to pay nearly $16 million in restitution and forfeit cash, cryptocurrency and property worth more than $500,000. Prosecutors had sought seven to 21 years in prison.
The district attorney’s office said investigators used blockchain records, digital evidence and search warrants to establish the case. Coinbase assisted with identifying affected customers and tracing funds, according to the earlier prosecution release.
US agencies and companies have pursued cross-border scam operations
On Oct. 13, Coinbase disclosed its participation in a West African scam operation involving the Justice Department’s Scam Center Strike Force and the UK’s National Crime Agency.
According to the exchange, the Oct. 6–9 operation in London targeted accounts, digital infrastructure and payment systems used by criminal networks. Its investigators traced financial activity, supported efforts to freeze assets and shared information with law enforcement.
Coinbase said the targeted schemes included fake cryptocurrency investments, police impersonation and staged arrests over video calls used to pressure victims into sending money.
Separately, June 16 reporting covered a proposed crypto theft taskforce under legislation introduced by Representatives Lance Gooden and Josh Gottheimer. Their bill would establish a Justice Department body coordinating investigations, digital evidence collection, stolen-asset tracing and assistance to victims.
Under the proposal, federal agencies would also provide technical guidance, training and information to state and local investigators handling cryptocurrency crimes.
FBI recovery guidance identifies authorized claims channels
Americans reported $11.4 billion in cryptocurrency fraud losses during 2025, up 22% from the previous year, according to FBI figures cited by Bloomberg.
In June 26 coverage of OneCoin victim recovery claims, the FBI explained that an official Justice Department remission program used more than $40 million in forfeited assets to provide compensation to eligible victims.
According to the agency’s notice, the program covered people who purchased OneCoin between 2014 and 2019 and suffered direct financial losses. The FBI said submitting a petition was free and did not guarantee payment.
For that investigation, the FBI identified justice.gov and onecoinremission.com as the only authorized websites and directed people reporting cryptocurrency investment fraud to its Internet Crime Complaint Center.
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