FBI and Brooklyn DA Shut 241 Crypto Scam Sites, Seize 112 Servers

US authorities dismantled the technical backbone of an alleged Eastern European crypto scam network, shutting 241 fraudulent websites and seizing 112 servers in a coordinated operation announced October 14.

Three Years to Take Down the Backend

The Brooklyn DA’s Virtual Currency Unit and the FBI’s New York field office ran a three-year investigation, executing warrants across three time zones. The network allegedly stole tens of millions from Americans, primarily Russian-speakers. About $300,000 recovered so far. No arrests announced.

How the Scam Worked

Russian-language Facebook ads promised investments; fake advisers coached victims to buy crypto and send it to fraudulent platforms showing fake rising balances — then locked accounts and demanded more for "taxes and fees." Victims were later re-contacted with fake recovery offers.

Why Servers, Not Just Domains

Past domain takedowns saw instant replacements. This time investigators seized the servers holding site content, victim data, and operational software. Americans reported $11.4B in crypto fraud losses in 2025, up 22%, per FBI figures.

Source: Cointelegraph, Bloomberg