Brooklyn DA and FBI Shut Down 241 Websites in Crypto Scam Crackdown

TLDR

• Brooklyn prosecutors and the FBI shut down 241 websites and seized 112 servers tied to a crypto scam network.
• The network targeted Russian-speaking Americans and is accused of stealing tens of millions of dollars.
• About $300,000 in stolen funds has been seized so far, and no arrests have been made.
• Victims were often found through Russian-language Facebook ads and later targeted again with fake recovery offers.
• Americans reported $11.4 billion in crypto fraud losses in 2025, up 22% from the year before.

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Brooklyn prosecutors and the FBI have shut down a crypto scam network that stole tens of millions of dollars from Americans. The Brooklyn District Attorney’s Office announced the action on Oct. 14. The operation took place last week.

JUST IN: Brooklyn prosecutors and the FBI disrupted 112 servers and 241 web domains tied to a crypto investment scam. ⚠️

The operation allegedly stole tens of millions of dollars from Russian-speaking victims. pic.twitter.com/ADF3Q2Eoze

— CryptosRus (@CryptosR_Us) October 14, 2026

Investigators shut down 241 websites and seized 112 servers. The servers were hosted by companies in Eastern Europe and the United States. No arrests were made.

The district attorney’s Virtual Currency Unit worked with the FBI on the case. It followed a three-year investigation. Investigators carried out search warrants and other 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. About $300,000 in stolen funds has been seized so far. Investigators are working to recover more.

Why Prosecutors Targeted the Servers

The unit had already seized or disrupted 400 domains tied to crypto investment fraud. Taking sites offline helped warn people. But replacement sites appeared quickly.

By going after the servers, investigators aimed to stop the operators from rebuilding. It also limits their ability to contact people they had already deceived. Assistant District Attorney Alona Katz led the case. “We disabled the back end of the operation,” she said, according to Bloomberg.

How the Scam Worked

Prosecutors said victims often found the scheme through Russian-language Facebook ads. People who responded got calls from Russian-speaking “investment advisers.” The advisers helped them open accounts on crypto websites.

Victims bought crypto and sent it to addresses linked to the platforms. When they tried to withdraw money weeks or months later, they were locked out. Some were told to pay extra fees and taxes.

Scammers then contacted victims again a few weeks later. They promised to recover the lost assets. District Attorney Eric Gonzalez said the criminals “tried to exploit them again with false promises to recover their money.”

Other Recent Cases and Efforts

The same unit handled a separate Coinbase case. Ronald Spektor, 23, received a four-to-12-year prison sentence for stealing nearly $16 million from about 100 Coinbase users. He posed as a Coinbase representative and told customers hackers were threatening their accounts.

On Oct. 13, Coinbase said it took part in an operation against a West African scam network. The Justice Department’s Scam Center Strike Force and the UK’s National Crime Agency also took part. The effort ran Oct. 6 to 9 in London.

Lawmakers have also proposed a crypto theft taskforce. The bill from Representatives Lance Gooden and Josh Gottheimer would create a Justice Department body to coordinate investigations.

Americans reported $11.4 billion in crypto fraud losses in 2025, according to FBI figures cited by Bloomberg. The FBI points people reporting crypto investment fraud to its Internet Crime Complaint Center.