Brooklyn Charges Cryptocurrency Scam Targeting Russian Community in U.S.

BROOKLYN, NY—Brooklyn District Attorney Eric Gonzalez announced significant progress in combating cryptocurrency scams that predominantly targeted the Russian-speaking community in Brooklyn and other U.S. states. His office’s Virtual Currency Unit has effectively disrupted a major operation by seizing 70 domains linked to these scams.

The operation, which lured victims through deceptive Facebook ads promising lucrative returns on investments, including misleading endorsements using “deepfake” videos of Elon Musk, resulted in substantial financial losses. Victims, believing they were investing in genuine cryptocurrency opportunities, were defrauded by callers posing as investment advisors who instructed them to transfer funds to fraudulent websites.

The scammers, who communicated in Russian, exploited the trust and language of the victims to facilitate the scam. These websites appeared credible, with similar designs and login pages, making it difficult for individuals to recognize the deception. The DA’s investigation revealed losses exceeding $5 million nationwide, with over $1 million from more than 20 individuals in Brooklyn alone.

Victims were often locked out of their accounts or burdened with additional fees when attempting to withdraw their supposed returns. Following the seizure of the domains, which now redirect to a law enforcement warning, the DA’s office has been contacted by individuals who were saved from sending further funds to these fraudulent schemes.

DA Gonzalez emphasized the importance of public vigilance and provided several warning signs and tips to help individuals recognize and avoid falling prey to such scams. These include skepticism towards unexpected investment opportunities, verifying the legitimacy of investment apps, and avoiding the installation of remote access software on personal devices. The public is encouraged to consult with trusted sources or the New York State Department of Financial Services to confirm the credibility of any investment opportunity.

This decisive action highlights the ongoing efforts by the Brooklyn DA’s office to protect residents from the increasing threat of cryptocurrency scams and to educate the community on safe investment practices.