US prosecutors crack down on cross-border crypto fraud network involving tens of millions of dollars in alleged fraud.

According to Bloomberg, Alona Katz, head of the virtual currency unit at the Brooklyn District Attorney’s Office in New York, has taken down a cross-border crypto fraud network operating from Eastern Europe with assistance from the FBI. Authorities seized and disrupted more than 240 fraudulent websites and 112 servers controlled by the ring, which had defrauded Brooklyn residents of tens of millions of dollars. The operation spanned three time zones, though no arrests were made. The gang primarily targeted Russian-speaking users via social platforms like Facebook, posing as immigrants who had succeeded in trading in the U.S. They lured victims to invest hundreds of dollars initially, then displayed fake profits to encourage further contributions. Fraudsters sometimes allowed small withdrawals to build credibility, but when victims requested large sums, they either demanded exorbitant fees or cut off contact entirely. As of early October, the team was processing the return of approximately $300,000 to victims of the fraud targeting Brooklyn’s Russian-speaking community. Citing FBI data, the report notes that crypto fraud losses reported in the U.S. in 2025 reached $11.4 billion, roughly three times the amount recorded three years prior.