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Business · Cryptocurrency · published 2026-10-14 · via GN Crypto / Cointelegraph

Brooklyn DA and FBI Shut Down Alleged Crypto Investment Scam, Seizing 112 Servers

Brooklyn prosecutors and the FBI dismantled an Eastern European cryptocurrency fraud operation that allegedly took tens of millions of dollars from mostly Russian-speaking Americans. Authorities shut 241 websites and seized 112 servers in the United States and Eastern Europe, though no arrests were announced. Investigators said the network ran fake investment schemes and later targeted some victims with bogus recovery offers; the FBI reported $11.4 billion in U.S. crypto fraud losses in 2025.

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Brooklyn’s district attorney and the FBI moved against an Eastern European cryptocurrency fraud network targeting mostly Russian-speaking Americans, closing 241 websites and taking 112 servers located in the U.S. and Eastern Europe. The operation occurred the previous week and was disclosed Wednesday; authorities announced no arrests.

Investigators say the group first ran fake crypto investment pitches, then approached some victims again with purported recovery services that demanded more payments. Seizing servers allegedly cut off websites and communications, limiting the network’s ability to launch new sites or reach victims. The FBI separately recorded $11.4 billion in U.S. crypto fraud losses for 2025, up 22% year over year.

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