Brooklyn DA and FBI Shut Down 241 Crypto Scam Sites, Seize 112 Servers Targeting Russian Speakers
Brooklyn prosecutors and the FBI dismantled a crypto scam network that stole tens of millions from Russian-speaking Americans, seizing 112 servers and shutting down 241 websites.
Why it matters
The operation demonstrates growing coordination between local prosecutors and federal agencies in disrupting crypto fraud infrastructure. Targeting servers rather than just domains aims to prevent rapid replacement of scam sites. The focus on Russian-speaking communities highlights how scammers exploit language and cultural trust within diaspora groups.
Where the sources disagree
number of servers seized
112 servers
Cointelegraph, Crypto.News, Bitcoin.com News, Crypto News (CryptoNews.net), Decrypt, Protos
more than 100 cloud servers
Bitcoin Magazine
Most sources report 112 servers; Bitcoin Magazine says 'more than 100 cloud servers'
Key facts
Brooklyn prosecutors and the FBI shut down 241 websites and seized 112 servers linked to a crypto scam network
Disputed figureReported by Cointelegraph
The scam targeted Russian-speaking Americans, primarily in Brooklyn, through Russian-language Facebook ads for fake investment platforms
Reported by Cointelegraph
No arrests have been made in connection with the operation
Reported by Cointelegraph
The operation was carried out last week across three time zones and announced on October 14
Reported by Cointelegraph
Scammers used a two-stage scheme: fake investment platforms followed by bogus recovery services targeting the same victims
Reported by Cointelegraph
Servers were hosted by companies in Eastern Europe and the United States, with infrastructure in Ukraine and other Eastern European countries
Reported by Cointelegraph
What happened
Brooklyn District Attorney Eric Gonzalez's Virtual Currency Unit, working with the FBI, executed search warrants across three time zones last week and announced the operation on October 14. The scheme lured Russian-speaking victims through Facebook ads for fake forex investment platforms, then targeted them again with bogus recovery services. Prosecutors estimate the network stole tens of millions of dollars, with some victims losing life savings. About $300,000 in stolen funds has been recovered so far. No arrests have been made. The servers were hosted by companies in Eastern Europe and the United States, with infrastructure traced to Ukraine and other Eastern European countries. The DA's office described it as one of the largest cyber enforcement actions by a local prosecutor's office.
How the story developed
- Official statement
Operation executed across three time zones
Search warrants and enforcement actions carried out last week
- First report
First report by Cointelegraph
US authorities dismantle crypto scam network that stole tens of millions
- Official statement
Brooklyn DA announces operation results
Press release discloses 241 websites shut down, 112 servers seized, $300,000 recovered
- Independent corroboration
Independently corroborated by Crypto.News
Crypto scam crackdown shuts 241 websites as Brooklyn DA and FBI act
- Update
Crypto.News publishes independent coverage with additional details
Reports three-year investigation preceded the operation
- Official statement
Official statement from Bitcoin.com News
Brooklyn DA and FBI Crush Massive International Crypto Scam
- Update
Decrypt publishes detailed account with victim methodology
Describes Facebook ad lure and fake advisor calls
- Update
Bitcoin Magazine publishes latest report
Confirms core facts, notes 'more than 100 cloud servers'
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 14 Oct 2026, 17:56 UTC: Cointelegraph — 1 independent source, 1 reports
- 14 Oct 2026, 21:00 UTC: Crypto.News — 2 independent sources, 2 reports
- 14 Oct 2026, 23:05 UTC: Bitcoin.com News, official — 3 independent sources, 3 reports
- 15 Oct 2026, 10:01 UTC: Decrypt — 4 independent sources, 5 reports
- 15 Oct 2026, 10:03 UTC: Bitcoin Insider — 5 independent sources, 6 reports
- 15 Oct 2026, 12:44 UTC: Protos — 6 independent sources, 7 reports
- 15 Oct 2026, 23:03 UTC: Bitcoin Magazine — 7 independent sources, 8 reports
- 17 Oct 2026, 11:45 UTC: The Daily Hodl — 8 independent sources, 10 reports
Affected entities
Original sources
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