Crypto Scammers Busted: $450,000 Frozen in NY

New York – A bold move by the New York Attorney General’s Office (OAG) has halted a massive cryptocurrency investment scam that ensnared Russian-speaking New Yorkers. The OAG, in collaboration with the Brooklyn District Attorney’s Office and the New York State Department of Financial Services (DFS), succeeded in freezing $300,000 worth of stolen cryptocurrency and seizing an additional $140,000.

Scammers, based in Vietnam, used deceptive social media ads in Russian to lure victims into investing in fake trading platforms. Over 100 fraudulent domains were seized in the sweep, with some early warnings issued to potential victims before they lost their money.

Attorney General Letitia James emphasized the severity of the scam, stating, ‘Hundreds of New York investors thought they were putting their hard-earned money into safe investments, only to be defrauded out of millions.’

The Brooklyn District Attorney’s Office, led by Eric Gonzalez, praised the joint effort. ‘Our partnership with the Attorney General’s Office and DFS led to this successful outcome,’ he said.

Superintendent Adrienne Harris of the DFS highlighted the importance of collaboration in combating crypto scams, noting that the department will continue working to protect New Yorkers from such fraudulent schemes.

The investigation began in October 2024 when DFS identified a fake cryptocurrency investment website displaying a legitimate BitLicense certificate. This initial finding led to the uncovering of a vast network targeting Russian-speaking residents with deceptive ads featuring popular names and personalities.