Brooklyn prosecutors dismantle international crypto fraud network

The Brooklyn District Attorney's office and the Federal Bureau of Investigation have dismantled the digital network of a multinational cryptocurrency investment scam. District Attorney Eric Gonzalez announced the enforcement action on Wednesday. Bitcoin Magazine Markets, Bitcoin News, and Decrypt all reported on the operation. [1][2][3]

Law enforcement agencies executed search warrants across three time zones to dismantle the operation. Investigators seized or disrupted 241 web domains and 112 cloud servers, according to Bitcoin Magazine Markets and Decrypt. The servers held victim data and were hosted by American and Eastern European companies. Decrypt reported that the perpetrators utilized IP addresses and server infrastructure based in Ukraine. [1][3]

The fraudulent scheme targeted Russian-speaking individuals in the United States and stole tens of millions of dollars, Bitcoin Magazine Markets reported. Decrypt added that the operators also conducted a fraudulent recovery service, reaching out to previous victims weeks later with false promises to regain their lost digital assets. [1][3]

Fraudulent investment schemes often build social relationships before convincing targets to deposit funds into fake cryptocurrency portals. These operations are commonly known as pig butchering scams. [7]