The victims lost millions of dollars on fictitious investments.
The Brooklyn District Attorney's office seized 70 domain names associated with a large-scale cryptocurrency scam, similar in principles to the widespread pig butchering scheme. The victims were members of the Russian-speaking diaspora who lost millions of dollars on fictitious investments.
Starting in October 2023, the prosecutor's office began receiving complaints from Russian-speaking residents of Brooklyn. The proceedings were handled by a special division - the Virtual Currency Division . Investigators have identified a typical strategy for this type of scam involving victims. It all started with an ad on Facebook * that invited people to invest in cryptocurrencies. Many ads even included a fake video of Elon Musk describing all the benefits and benefits of investing.
The victims were then linked to "investment advisers" who spoke Russian. They helped open accounts on fake crypto exchanges. "After several weeks or months of investments, the victims tried to withdraw funds, but their accounts were blocked or they were required to pay allegedly additional fees and taxes," the prosecutor's office explained.
According to the investigation, the fraudulent sites were operated from Russia, and the scammers used the Russian language to win over their compatriots and gain their trust. "Since Russia is located outside the jurisdiction of the United States, it is extremely difficult to return the stolen money, and the prosecutor's office decided to focus exclusively on blocking websites," the department noted.
More than 20 Brooklyn residents lost a total of more than $ 1 million. This area of New York is home to one of the largest Russian — speaking communities in the United States-about 120,000 people. And, as District Attorney Eric Gonzalez says, this is "only a fraction of the total damage" from such campaigns.
Earlier, the Secret Service's Assistant Director of Investigations, Brian Lambert, called investment crypto brokers "a real and serious threat to the entire US financial system."
According to the FBI, Americans lost almost $ 4 billion last year due to fraudulent transactions involving cryptocurrency investments.
Meanwhile, New York's attorney General, Letitia James, warned residents of the state about the dangers of "romantic" scams, advising: "If something looks too good to be true, it probably is."
The Brooklyn District Attorney's office seized 70 domain names associated with a large-scale cryptocurrency scam, similar in principles to the widespread pig butchering scheme. The victims were members of the Russian-speaking diaspora who lost millions of dollars on fictitious investments.
Starting in October 2023, the prosecutor's office began receiving complaints from Russian-speaking residents of Brooklyn. The proceedings were handled by a special division - the Virtual Currency Division . Investigators have identified a typical strategy for this type of scam involving victims. It all started with an ad on Facebook * that invited people to invest in cryptocurrencies. Many ads even included a fake video of Elon Musk describing all the benefits and benefits of investing.
The victims were then linked to "investment advisers" who spoke Russian. They helped open accounts on fake crypto exchanges. "After several weeks or months of investments, the victims tried to withdraw funds, but their accounts were blocked or they were required to pay allegedly additional fees and taxes," the prosecutor's office explained.
According to the investigation, the fraudulent sites were operated from Russia, and the scammers used the Russian language to win over their compatriots and gain their trust. "Since Russia is located outside the jurisdiction of the United States, it is extremely difficult to return the stolen money, and the prosecutor's office decided to focus exclusively on blocking websites," the department noted.
More than 20 Brooklyn residents lost a total of more than $ 1 million. This area of New York is home to one of the largest Russian — speaking communities in the United States-about 120,000 people. And, as District Attorney Eric Gonzalez says, this is "only a fraction of the total damage" from such campaigns.
Earlier, the Secret Service's Assistant Director of Investigations, Brian Lambert, called investment crypto brokers "a real and serious threat to the entire US financial system."
According to the FBI, Americans lost almost $ 4 billion last year due to fraudulent transactions involving cryptocurrency investments.
Meanwhile, New York's attorney General, Letitia James, warned residents of the state about the dangers of "romantic" scams, advising: "If something looks too good to be true, it probably is."
