Attorney General Letitia James announced a major crackdown on a sophisticated cryptocurrency investment scam that defrauded hundreds of Russian-speaking New Yorkers and cost victims over $1 million.
The investigation, conducted in collaboration with the Brooklyn District Attorney’s Office and the New York State Department of Financial Services (DFS), uncovered a Vietnam-based fraud ring that used deceptive Russian-language social media ads to lure individuals into fake crypto trading platforms.
“Hundreds of New York investors thought they were putting their hard-earned money in safe, high-return investments, only to be defrauded out of millions of dollars,” said Attorney General James. “My office… took action to stop these scammers and protect New Yorkers.”
Scammers used Facebook ads to promise high returns and then moved communications to encrypted apps like Telegram. Victims were misled into believing their investments were growing, only to be hit with false withdrawal fees and ultimately cut off after handing over thousands of dollars.
Meta shut down more than 700 accounts linked to the scam after learning of the scheme. Investigators also seized over 100 fraudulent domains, blocked email communications, and froze $300,000 in cryptocurrency via a court order. The Brooklyn DA’s Office recovered another $140,000.
DFS Superintendent Adrienne Harris praised the joint action: “Through partnership and collaboration… these criminals were held accountable for their deplorable actions.”
The scammers’ network paid a “Black Hat” advertiser in Vietnam using stolen cryptocurrency to promote the scam while evading Facebook’s ad rules. Authorities believe more than 300 victims were targeted, primarily in Brooklyn.
Attorney General James is urging anyone affected by crypto scams or who has knowledge of misconduct to file complaints online. Verification of licensed crypto firms and complaint forms are available at dfs.ny.gov/complaint or by calling (800) 342-3736.
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