US authorities dismantle crypto scam network that stole tens of millions

Brooklyn prosecutors and the FBI have dismantled a cryptocurrency scam network that allegedly defrauded tens of millions of dollars from primarily Russian-speaking Americans. The operation, which took place last week and was 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.

Brooklyn District Attorney Eric Gonzalez credited the office’s Virtual Currency Unit and the FBI for uncovering the network’s infrastructure, stating that the scammers stole millions of dollars through an elaborate investment scheme and then tried to exploit victims with false promises to recover their money. The seizure of the servers was crucial to disrupting the scammers' ability to create new websites and contact victims.

The operation comes amid a rise in cryptocurrency-related fraud across the US, with Americans reporting $11.4 billion in crypto fraud losses in 2025, a 22% increase from the previous year.

Brief written by urgent.news from Cointelegraph's own syndicated text. Machine-written — may contain errors; check the original before relying on it.