New York AG Freezes $300,000 in Crypto Scam Targeting Russian Speakers

New York Attorney General Letitia James has announced the freezing of $300,000 in cryptocurrency linked to a fraudulent investment scam targeting Russian-speaking New Yorkers. The scammers, based in Vietnam, lured victims with deceptive social media ads in Russian, promising high returns on investments in fake cryptocurrency trading platforms.

The joint investigation involved the Office of the Attorney General (OAG), the Brooklyn District Attorney’s Office, and the New York State Department of Financial Services (DFS). More than a hundred victims were convinced to invest in these fraudulent platforms, with some early warnings issued, and others having their stolen assets recovered.

Meta has also played a role in the investigation by shutting down over 700 accounts associated with an advertiser promoting the scam. The OAG secured a court order freezing $300,000 worth of cryptocurrency, while the Brooklyn District Attorney’s Office seized an additional $140,000.

‘Hundreds of New York investors thought they were investing in safe, high-return investments, only to be defrauded out of millions of dollars,’ said Attorney General James. ‘We took action to stop these scammers and protect New Yorkers.’

Brooklyn District Attorney Eric Gonzalez emphasized the importance of law enforcement collaboration in combating crypto scams. ‘Through partnership with the Attorney General’s Office and DFS, we returned hundreds of thousands of dollars to victims and held these criminals accountable,’ he said.

The investigation began in October 2024 when DFS identified a fake cryptocurrency investment website displaying what appeared to be a BitLicense certificate, issued by DFS for legitimate businesses. This led to the discovery of a network of related domains and accounts involved in the scam targeting Russian-speaking residents across New York and beyond.

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