New York Authorities Recover $140K and Freeze $300K in Crypto Investment Scam Targeting Russian Speakers
New York authorities have successfully recovered $140,000 and frozen an additional $300,000 in funds tied to a sophisticated cryptocurrency investment scam that exploited fake ads on popular social media platforms.
The scheme, which primarily targeted Russian-speaking communities in New York and across the United States, was uncovered through a joint investigation involving the Brooklyn District Attorney’s Office, the New York State Attorney General’s Office, and the New York State Department of Financial Services (DFS).
According to officials, fraudsters used cryptocurrency to finance deceptive digital asset investment ads on platforms such as Facebook. These ads lured unsuspecting victims to fraudulent investment sites, leading to significant financial losses.
In response, New York Attorney General Letitia James emphasized the importance of public vigilance, stating, “These scammers targeted Russian speakers on Facebook with enticing ads, and my office, together with DFS and the Brooklyn District Attorney’s Office, took decisive action to stop these scammers and protect New Yorkers.”
The investigation, while successfully recovering or freezing over $440,000 in stolen crypto funds, revealed the scam had inflicted more than $1 million in losses within Brooklyn alone. Authorities have identified over 300 victims affected by this fraudulent operation.
Central to the scam was a counterfeit cryptocurrency investment website that falsely claimed to hold a BitLicense — the official license required for crypto firms to operate legally in New York State. This false assurance was intended to mislead investors into believing they were engaging with a legitimate, regulated business.
The fraudulent advertisements, often referred to as “Black Hat” ads, were predominantly in Russian and distributed widely on Facebook. Following notification of the investigation, Meta — the parent company of Facebook — took action by removing more than 700 deceptive ads linked to the scam.
Crypto Users Remain at Risk from Evolving Scams
Despite efforts to crack down on such fraudulent activities, crypto users continue to face significant threats. A recent report from blockchain analytics firm Chainalysis revealed that illicit transactions involving digital assets reached approximately $51 billion in 2024. While ransomware-related payments dropped by 35%, authorities remain concerned about the increasing role of artificial intelligence in enabling and amplifying scam operations.
Among the notorious scams using social media ads are fraudulent XRP airdrop schemes impersonating Ripple CEO Brad Garlinghouse. These scams not only exploit the credibility of well-known figures in the crypto space but also take advantage of ongoing legal battles, such as Ripple’s high-profile case with the U.S. Securities and Exchange Commission (SEC).
