New York Cracks Down on Cryptocurrency Scams Targeting Russian Community
The office of New York Attorney General Letitia James has announced a major crackdown on an international cryptocurrency scam that targeted the Russian-speaking community in Brooklyn. In coordination with multiple local law enforcement agencies, authorities seized $140,000 in cryptocurrency, froze an additional $300,000 in assets, and took down domains and email addresses used in the scam.
Scam Targeting Russian-Speaking Community on Facebook
The criminal organization behind the scam was identified as being based in Vietnam. The group used Russian-language ads on Facebook to reach and defraud users in New York. The victims were mainly Russians living in Brooklyn and other boroughs who were lured into investing in fake cryptocurrency exchanges, promising high returns and safety.
After gaining trust, the scammers asked victims to transfer money to platforms they controlled. Once the money was transferred, victims quickly lost access and were unable to withdraw their investments. According to preliminary reports, at least $1 million was stolen in Brooklyn alone.
Sophisticated modus operandi, using Telegram as a distraction
After luring victims through Facebook, the organization redirected users to Telegram, an encrypted messaging platform, to continue communicating and carry out further scams. On Telegram, the subjects created a professional image, provided fake investment information, and accessed staged "trading accounts" that showed steady profit growth.
This method was designed to increase trust, making victims feel more comfortable depositing more money. All websites, platforms, and email accounts used in this process were set up with proxies and obfuscation technology to avoid being traced by authorities.
What the authorities are doing: Assets seized, but no arrests yet
The New York Police Department and the Attorney General’s office have been working together since October 2024, when a series of unusual Russian-language ads were discovered on Facebook. Using digital tracing tools, they were able to trace the scam to an organized group operating from Vietnam.
As of publication, authorities have successfully seized $140,000 in cryptocurrency, frozen another $300,000 in assets, and disabled email accounts and domains associated with the scam. However, the masterminds have not been arrested due to their cross-border operations. Only three individuals have been formally named in the court order, while several others are still under investigation.
A Warning from Attorney General Letitia James
Speaking in announcing the case, Attorney General Letitia James highlighted the dangers of cryptocurrency scams on social media. She urged New Yorkers to be more vigilant when it comes to online investment ads:
“Hundreds of New Yorkers thought they were investing their savings in legitimate investments, only to be duped out of millions of dollars. My office will continue to take action to stop these scammers and protect the public from shady financial practices.”
Political Landscape and Tough Stance on Cryptocurrency
Letitia James has long been skeptical of the cryptocurrency sector, publicly criticizing major exchanges and proposing tighter regulation of the industry. The campaign reflects a continued effort to protect consumers from increasingly complex digital risks. While some city officials have taken a more moderate stance on technological innovation, James has been steadfast in his pursuit of a strict regulatory policy.
A warning to users: Beware of investment ads
The New York incident is a clear warning to the investor community, especially social media users. Cryptocurrency scams are no longer limited to high-tech activities such as hacking or wallet spoofing, but are expanding to include social psychology tactics that exploit the lack of vigilance of individual users.
People should be wary of attractive investment ads on social media, especially if they ask for money transfers or sharing personal information on unverified platforms. Verifying information, using reputable exchanges, and being alert to unusual forms of contact are important steps to protect yourself from these growing threats.
Conclusion
While the New York crackdown has helped stem some of the damage, the majority of those behind the scam remain at large. This incident highlights the global and unpredictable nature of modern cryptocurrency crime and highlights the urgent need for international cooperation in cyber law enforcement and investigation. While we wait for action from the relevant parties, individual users remain the first and most important line of defense against