According to recent reports, the District Attorney in Brooklyn, Eric Gonzalez, has seized 70 domains that are alleged to be connected to a widespread cryptocurrency scam. Investigators believe that this specific scam has already resulted in over $5 million in losses across the country. Detectives also believe that the scam is specifically targeting Russian-speaking communities that reside in the U.S.

At least 20 Brooklyn residents were impacted by the crypto scheme, which resulted in at least $1 million in losses for those 20 individuals. Police were first alerted about the ongoing scam when they started receiving calls from victims in October of 2023.

These victims reported that they were making consistent investments into cryptocurrency platforms, but they were not getting the returns that they were promised. When further probed, many of these victims said that they became aware of the investment “opportunity” through Facebook ads that highlighted Elon Musk. Authorities were able to locate these ads and discovered they were deepfakes. Musk never actually endorsed the platforms.

These ads would direct targeted individuals to fake websites. There, the victims would sign up to be contacted by investment advisors who spoke Russian and guided them through the process of “investing” into the platform.

Thankfully, investigators have since taken down 70 websites connected to the scam, and they’ll continue to work on identifying who is behind the whole conspiracy. In the meantime, police are warning consumers to be wary of “Pig Butchering,” which is a new type of scam that allows victims to initially make small financial withdrawals from “investment” accounts in order to appear legitimate. After a few withdrawals, access is revoked, and victims are encouraged to spend even more money to re-gain access to their “investments”.

While nothing has been confirmed yet, police think the scam and sites may have originated in Russia. If you attempt to visit the websites that were taken down, you’re now redirected to a warning from law enforcement officers.

Have You Been Victimized by a Cryptocurrency Scam?

Have you recently been a victim of a cryptocurrency scam? If so, then it’s important to understand your options when it comes to seeking out justice. Depending on what happened, you could have multiple options. For one, you should report the incident as a crime. Investigators will work towards identifying who is responsible, and if possible, then they will charge them with a crime. For another, you could seek out financial justice through a personal injury lawsuit.

Once authorities identify who is responsible, you can file your claim for compensation and hopefully recover some of the money you lost as a result of the ordeal. If the situation warrants it, then you should seek out compensation for any additional losses you sustain due to the impacts of the scam.

Are you interested in learning more about your legal rights and options after falling victim to a cybercrime? If so, then we want to help.

Schedule a call with our team here at Bukh Law Firm now to get started.