New York Authorities Crack Down on Crypto Scam Targeting Russian-Speaking Investors

New York Attorney General Letitia James has unveiled a coordinated crackdown on a sophisticated cryptocurrency scam operation targeting Russian-speaking residents in Brooklyn. The Vietnamese-led ring allegedly used Russian-language Facebook ads to lure hundreds of victims into fake investment schemes, resulting in millions in losses.

Law enforcement agencies detected suspicious activity as early as October 2024, with Brooklyn residents alone losing $1 million to the fraudulent exchanges. "Hundreds of New York investors thought they were putting their hard-earned money in safe, high-return investments," James stated, emphasizing the need for vigilance against online crypto investment ads.

The operation marks a significant enforcement action despite the Southern District of New York's recent slowdown in crypto-related cases. The DFS collaborated with the Brooklyn DA's Office and the Attorney General's office to dismantle the international scam network.