US authorities dismantle crypto scam network that stole tens of millions
Quick Look
Brooklyn prosecutors and the FBI disrupted an Eastern European cryptocurrency scam network that stole tens of millions from Russian-speaking Americans, shutting down 241 websites and seizing 112 servers without making arrests, amid rising US crypto fraud losses.
AI-generated summary
Why It Matters
Cryptocurrency-related fraud is rising in the US, with Americans reporting $11.4 billion in losses in 2025, a 22% increase from the previous year, according to FBI figures.
Prosecutors in Brooklyn, New York, working with the Federal Bureau of Investigation (FBI), have disrupted an Eastern European cryptocurrency scam network accused of stealing tens of millions of dollars from Americans, primarily Russian-speakers.
The operation, carried out last week and announced on Wednesday, resulted in the shutdown of 241 websites and the seizure of 112 servers hosted by companies in Eastern Europe and the United States, according to the Brooklyn District Attorney’s Office. No arrests were made.
“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,” Brooklyn District Attorney Eric Gonzalez said in a statement. He credited the office’s Virtual Currency Unit and the FBI with uncovering the network’s infrastructure.
Seizing the servers was key to the operation because it disrupted the scammers’ ability to create new websites and contact victims. “We disabled the back end of the operation,” Assistant District Attorney Alona Katz, who led the investigation, said, according to Bloomberg.
The operation comes amid a rise in cryptocurrency-related fraud across the US. Americans reported $11.4 billion in crypto fraud losses in 2025, a 22% increase from the previous year, according to FBI figures cited by Bloomberg.
What to Watch
AI outlook — possibilities, not facts
Further investigations may lead to arrests as evidence from seized servers is analyzed
Likely · Within weeks
Increased public warnings about crypto investment scams targeting linguistic communities
Very likely · Within days
Open Questions
- Why were no arrests made despite the seizure of servers and websites?
- What specific investment scheme did the scammers use to defraud victims?
- Are the seized servers located primarily in Eastern Europe or the United States?
