The Brooklyn District Attorney’s office says it has disrupted the online infrastructure of a cryptocurrency investment scam that targeted Russian-speaking people in the US. Working with the FBI, the office’s Virtual Currency Unit seized and disrupted 241 web domains and 112 servers, according to a press release from District Attorney Eric Gonzalez on Wednesday, 14 October 2026.
No arrests or charges were announced. The DA’s description of the scheme sets out allegations that have not been tested in court.
What happened
According to the release, the Virtual Currency Unit (VCU) has been investigating the scam organisation for three years. Last week, it executed numerous search warrants and took other enforcement actions across three time zones over several hours.
The operation took down 241 scam investment websites. More significantly, according to the DA, it hit “a large cluster of over 100 cloud-based servers hosted by Eastern European and American companies.” That cut the scammers off from the data that fed the websites, from victim information and from their operational software.
The DA’s office said the scammers relied on cyber infrastructure and IP addresses in Ukraine and other Eastern European countries.
Why go after the servers
The office had already seized or disrupted 400 domains linked to cryptocurrency investment fraud before last week, the release says. Those seizures helped warn potential victims, but new scam websites “popped up quickly.”
So the VCU moved on to the servers behind the sites and, with the FBI’s help, coordinated an international takedown. The DA says disrupting the underlying infrastructure takes away the scammers’ ability to quickly create new websites and contact existing victims.
How the scam worked
The investigation began when the VCU identified a large group of Russian-speaking victims in Brooklyn with similar stories, according to the release:
- They responded to a Facebook advert in Russian offering investment opportunities.
- A so-called “investment advisor” called them, speaking Russian.
- The “advisor” coached them into opening an account on a crypto investment website.
- They bought cryptocurrency and sent it to addresses linked to the platform.
- After weeks or months of “investing,” they tried to withdraw money but were locked out, or told to pay extra fees and taxes.
Data recovered in the operation also showed a second layer of fraud. A few weeks after the first deception, the scammers contacted victims again, promising they could recover the stolen money. This is known as a recovery scam.
Because Brooklyn has a very large Russian-speaking population, the DA says the scheme hit Brooklyn residents disproportionately.
How much was taken
“It is estimated that tens of millions of dollars were stolen in the course of the scheme, with some victims losing their entire life savings,” the release says. That is the DA’s estimate. The office says it has seized about $300,000 in stolen funds so far and is working to recover more.
What officials said
Gonzalez said: “When scammers halfway around the world target Brooklyn residents, they should know they are not beyond our reach.” He added: “By disrupting more than 100 servers and hundreds of fraudulent websites, we have struck at the heart of this criminal enterprise and made it far harder for these scammers to victimize others.”
James C. Barnacle, Assistant Director in Charge of the FBI’s New York office, said in the release: “This case is a prime example of what can be done through the power of our partnerships with state, local, and international law enforcement.”
The DA also thanked Shadow Server, Coeus and UltaHost for their help.
What we don’t know
The release does not name any suspects, say how many victims there were, or announce charges. It is not clear whether the people behind the scheme can be identified or reached.
What this means
- Infrastructure, not just websites. Taking down servers aims to stop scammers simply launching new sites.
- Watch for recovery scams. Anyone offering to recover lost crypto for a fee may be part of the same fraud.
- Little money back so far. About $300,000 has been seized against estimated losses in the tens of millions.
Sources
- Brooklyn District Attorney’s Office, “Brooklyn DA’s Virtual Currency Unit Dismantles Infrastructure of Multinational Crypto Investment Scam that Targeted Russian Speakers”, 14 October 2026. https://www.brooklynda.org/2026/10/14/brooklyn-das-virtual-currency-unit-dismantles-infrastructure-of-multinational-crypto-investment-scam-that-targeted-russian-speakers/
