Brooklyn prosecutors, working with the FBI, have disrupted the online infrastructure of a crypto investment fraud that allegedly stole tens of millions of dollars from Russian-speaking Americans, including some victims’ entire life savings.
The Brooklyn District Attorney’s Virtual Currency Unit seized or disrupted 112 servers and 241 web domains connected to the operation. The enforcement actions took place across three time zones last week, with investigators targeting infrastructure hosted by companies in the United States and Eastern Europe.
According to Decrypt, prosecutors said the operation used servers and internet protocol addresses in Ukraine and other Eastern European countries. District Attorney Eric Gonzalez said the alleged criminals not only took millions from victims but later attempted to defraud them again by offering to recover the lost money.
How the alleged investment fraud worked
The scheme focused on Russian-speaking residents in the United States, with a particularly large group of victims in Brooklyn. Prosecutors said many people first encountered the operation through Russian-language investment advertisements on Facebook.
After responding to an advertisement, victims were contacted by someone presenting themselves as an investment adviser. The adviser guided them through opening an account on a cryptocurrency investment website and helped them purchase cryptoassets. Victims then sent the assets to addresses associated with the platforms.
The fraud often became clear only when victims attempted to withdraw their money weeks or months later. According to the Brooklyn District Attorney’s Office, they were either locked out of their accounts or told to pay extra fees and taxes before withdrawals could be processed.
Investigators also found evidence of a second-stage recovery scam on the seized servers. Several weeks after the initial fraud, the criminals allegedly contacted victims with promises that their stolen assets could be recovered, creating another opportunity to demand money or personal information.
Three-year investigation and recovery effort
The Virtual Currency Unit had investigated the operation for three years before last week’s action. Prosecutors said Brooklyn’s large Russian-speaking population contributed to the disproportionate impact on residents of the borough.
The latest takedown expanded earlier efforts. Before the operation against the 112 servers and 241 domains, the unit had already seized or disrupted 400 domains linked to the fraud. Prosecutors said new websites continued to appear, allowing the alleged scammers to reach previous victims and quickly establish replacement platforms.
Authorities estimate that the scheme stole tens of millions of dollars. They have recovered or seized about $300,000 so far and said they are continuing efforts to recover additional funds. The operation involved search warrants and other enforcement measures carried out with FBI assistance.
The case follows another Brooklyn crypto-fraud prosecution in which a local man was charged with stealing $16 million from nearly 100 Coinbase users through phishing. That defendant received a sentence of up to 12 years in prison.
Current market picture
Moneyiar market data at 9:28–9:29 p.m. local time on October 15, 2026, showed:
- AKEDO (AKE): $0.0326874585, up 24.49% over 24 hours and 23.85% over seven days.
- ECOMI (OMI): $0.0002653436, down 2.18% over 24 hours and 1.99% over seven days.
- Pharos (PROS): $0.5929661372, up 1.61% over 24 hours and down 8.42% over seven days.
- Oasis (ROSE): $0.0082523249, up 3.05% over 24 hours and 8.85% over seven days.
These market movements are separate from the Brooklyn investigation and do not indicate any connection between the listed assets and the alleged scam.
