In a major crackdown on cryptocurrency fraud, New York Attorney General Letitia James has introduced the dismantling of a foreign-operated scam network that stole millions from unsuspecting investors across Brooklyn and the broader New York area. The fraud ring, operated by a group based in Vietnam, specifically targeted Russian-speaking individuals through deceptive social media ads that promoted fake crypto exchanges. According to James, the operation successfully duped hundreds of victims before law enforcement managed to trace and dismantle the network, seizing assets and shutting down their digital infrastructure.

Authorities report that $140,000 in cryptocurrency has been confiscated, and another $300,000 in assets was frozen during the coordinated sting operation. Several domain names and email accounts linked to the fraud were also seized. Although this is a significant blow to the ring’s operations, the exact number of victims remains unknown. Just from Brooklyn alone, over $1 million in losses have been confirmed.

The scam came to light in late 2024 when local law enforcement officials began noticing a series of suspicious Facebook posts written in Russian, promising quick profits and high returns from investing in supposed cryptocurrency platforms. As investigators dug deeper, they discovered a carefully crafted scheme run from overseas. The fraudsters used Russian-language Facebook ads to lure in victims, leading them to Telegram chats where they were presented with fake exchange accounts displaying unrealistically high growth rates. These fabricated success stories encouraged further deposits from victims, many of whom believed they were investing in legitimate platforms.

Despite operating from Vietnam and using multiple proxy networks to hide their digital footprint, the fraudsters were ultimately tracked down through persistent investigative efforts. Their attempts to erase traces of the operation reportedly consumed over $1 million of stolen funds, suggesting that their profit margins were severely diminished by these counter-surveillance efforts. Still, the full financial toll of the scam remains unknown, and the true number of affected individuals may never be fully revealed.

Attorney General Letitia James, a long-standing critic of the cryptocurrency industry, emphasized that this crackdown is part of her ongoing commitment to protect New Yorkers from online fraud. “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,” she stated. “My office, together with law enforcement, took action to stop these scammers and protect New Yorkers. I urge all New Yorkers to be vigilant of online cryptocurrency investment ads.”

Despite the success of the operation in freezing and seizing digital assets, law enforcement currently lacks the jurisdiction to pursue the suspects directly in Vietnam. Only three individuals have been formally named in the court filing, while additional unnamed suspects are believed to be involved. The full extent of the network and its operations may still be under investigation.

The bust underscores a larger trend of cybercriminals exploiting the crypto boom and leveraging social media to reach vulnerable targets. Facebook, in particular, has become a preferred platform for such schemes due to its wide reach and targeting tools. Victims are often funneled from public ads into encrypted chat rooms on platforms like Telegram, where scammers build trust through fake dashboards, phony balances, and customer service-style interactions.

This latest case adds to growing scrutiny of crypto-related crime in the U.S., especially in New York, where AG James has taken a notably tough stance. Her administration continues to clash with more crypto-friendly voices in state and city government, particularly as the industry grows in popularity during Donald Trump’s second term. Nonetheless, James’ office has remained steadfast in its position, warning residents to remain skeptical of flashy crypto ads promising quick riches.

While this bust may not yet bring the perpetrators to justice, it serves as a critical warning: scammers are evolving, and investors must remain cautious. The battle against crypto crime is far from over — but for many victims in New York, today marks a step toward accountability.