Brooklyn Dismantles International Cryptocurrency Fraud Network and Seizes Servers

The Brooklyn District Attorney's Office (New York) announced the dismantling of an international cryptocurrency fraud network based in Eastern Europe, concluding years-long efforts to stop a scam operation that caused the theft of tens of millions of dollars from American citizens, as reported by Bloomberg.

The operation, carried out last week, resulted in the closure of 241 websites linked to cryptocurrency fraud schemes, according to the Brooklyn District Attorney's Office.

Law enforcement authorities also seized 112 servers controlled by the fraud gang and hosted by companies in Eastern Europe and the United States.

No arrests were made, but Brooklyn District Attorney Eric Gonzalez described the operation—in a statement to "Bloomberg"—as "one of the largest cyber disruptions conducted by a local prosecutor's office."

Many of these scams targeted Russian-speaking residents in Brooklyn and across the United States. The investigation into the fraud network, which began three years ago, revealed that a significant number of victims had responded to a Facebook advertisement promoting investment opportunities. Investigators also discovered that the network used cyber infrastructure and Internet Protocol (IP) addresses located in Ukraine and other Eastern European countries.

The operation was led by the Brooklyn District Attorney's Office's "Virtual Currency Unit," in cooperation with the New York Field Office of the Federal Bureau of Investigation (FBI).

Gonzalez stated that the unit "uncovered the fraud scheme, traced the stolen cryptocurrencies, identified the scammers, and achieved an unprecedented feat by seizing the servers used by this criminal gang."

For his part, James Barnacle, head of the FBI's New York office, said: "The Brooklyn District Attorney's Office quickly engaged our specialized experts, and together we were able to uncover the threads of this conspiracy and reach its full truth."