Brooklyn prosecutors and the FBI announced the disruption of a crypto investment scam that targeted Russian-speaking individuals in the United States, seizing or disabling 241 fraudulent websites and 112 servers used to operate the scheme. The operation, executed last week following a three-year investigation, came after a prior effort by the Brooklyn District Attorney’s Virtual Currency Unit had seized or disrupted 400 domains linked to similar fraud, though replacement sites continued to emerge. Investigators focused on servers hosted by Eastern European and U.S. companies that stored victim data and managed the fraudulent platforms, aiming to prevent rapid relaunch by the operators. No arrests have been publicly announced. The scam allegedly used Russian-language Facebook advertisements to lure victims with promises of cryptocurrency investment opportunities. Once victims transferred funds, fake advisors allegedly coached them to pay additional amounts under the guise of taxes or fees to unlock withdrawals. When users attempted to retrieve their money, platforms reportedly locked accounts or demanded further payments, after which scammers contacted them again offering false recovery services. The DA’s office reported seizing approximately $300,000 in assets, though efforts to recover additional funds are ongoing. According to the FBI’s 2025 annual report, crypto-related investment fraud accounted for about 84% of the $8.65 billion in investment fraud losses reported that year, with crypto-linked losses across all internet crime categories reaching $11.37 billion of the total $20.88 billion. The case reflects a broader trend of financial fraud conducted through digital asset platforms, particularly those marketed in languages other than English. Brooklyn authorities continue to analyze victim data to determine the full scope of financial harm, with some individuals reportedly losing their entire life savings. AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.