TL;DR:
The Brooklyn District Attorney’s Office and the FBI dismantled 241 fraudulent domains and 112 computer servers linked to illicit operations across the U.S. and Eastern Europe.
The criminal network siphoned tens of millions of dollars from U.S. residents , luring victims through investment ads on Facebook.
The Department of Justice Strike Force reports the recovery of more than $800 million in assets since its establishment in November 2025.
More than 240 websites were seized by U.S. judicial and federal authorities for their alleged involvement in crypto scams . The coordinated crackdown dismantled digital infrastructure used to defraud retail investors of tens of millions of dollars.
The joint operation involved the Brooklyn District Attorney’s Virtual Currency Unit and the FBI’s New York field office . According to the official report, agents seized 112 computer servers hosted by service providers within the United States and across Eastern Europe.
Court filings indicate the network used these servers to operate fake investment platforms, harvest personal data, and maintain direct communication channels with victims. Preliminary inquiries began three years ago after investigators identified a recurring fraud pattern targeting Russian-speaking communities in Brooklyn.
Operators lured victims through Facebook advertisements promising high-yield investment returns. According to statements by District Attorney Eric Gonzalez, investigators traced on-chain transactions to physical infrastructure and IP addresses located in Ukraine and neighboring nations.
Prosecutors executed search warrants simultaneously across three time zones to disable the syndicate’s operating systems. Assistant District Attorney Alona Katz stated that seizing the physical servers neutralizes the underlying software, hindering the organization’s ability to immediately bring cloned domains back online.
Expanding the Legal Dragnet on Digital Fraud
The October operation stands as the largest enforcement action carried out by the Virtual Currency Unit since its inception in 2023. In June 2024, the unit seized 70 domains tied to $5 million in losses, totaling roughly 400 seized portals prior to this latest offensive.
The U.S. Department of Justice continues parallel efforts through its specialized task force targeting scam compounds. Official agency records confirm that on September 9, 2026, authorities seized Telegram channels operated by Xinbi Guarantee, an illicit marketplace accused of supplying counterfeit platforms and money laundering services.
During that enforcement action, federal courts restrained $52 million in crypto assets, while stablecoin issuer Tether froze 39.27 million USDT across 10 addresses on the Tron network. Justice Department records show its strike force has recovered more than $800 million in digital assets since November 2025.
Globally, law enforcement agencies are mounting multilateral operations against these illicit financial operations. INTERPOL reports for Operation First Light 2026 revealed the arrest of 5,811 individuals and the interception of nearly $293 million in fiat and digital assets across 97 jurisdictions in July.
New York authorities have not released the identities of the administrators behind the seized servers or the total balance of funds secured during this phase. The district court scheduled forensic reports on the seized hard drives to be presented during procedural hearings in November 2026.
