Brooklyn DA Nabs Major Cryptocurrency Scam Operation

The Brooklyn District Attorney has announced the disruption of a major cryptocurrency scam that defrauded individuals nationwide, resulting in millions of dollars in losses. The DA's office uncovered an operation targeting individuals through text messages, dating websites, and online chat groups, persuading them to invest in cryptocurrency via fraudulent platforms. The investigation led to the seizure of multiple website domains and virtual servers linked to the scam, highlighting the establishment of a specialized Virtual Currency Unit within the DA's office to combat cryptocurrency-related fraud.

Brooklyn District Attorney Announces Major Cryptocurrency Scam Bust

New York, NY - March 9, 2023

In a significant operation against digital currency fraud, the Brooklyn District Attorney's office has announced the successful disruption of a cryptocurrency scam that defrauded individuals across the United States of millions of dollars.

According to District Attorney Eric Gonzalez, the fraudsters targeted unsuspecting individuals through various means, including random text messages, dating websites, and online chat groups. The scammers lured victims into investing in cryptocurrencies through deceptive websites and mobile applications, resulting in significant financial losses for the victims.

One victim, who lost $118,000 to a scammer she encountered on a dating app, shared her experience. "He [the scammer] tried to persuade me about crypto investments because I mentioned that I was going through a divorce... I felt foolish, like I was spiraling out of control. If I can warn other women and victims not to fall for these scams, I will have accomplished something," she stated.

Investigators traced one victim's investment to a foreign cryptocurrency exchange account, from where it was cashed out by an individual located outside of U.S. jurisdiction. The Brooklyn DA's office successfully seized over a dozen website domains and three virtual servers linked to the fraudulent operation.

Following a surge in complaints from Brooklyn residents regarding cryptocurrency scams, District Attorney Gonzalez established a Virtual Currency Unit in fall 2023. The office urges the public to exercise caution and adhere to these guidelines:

• Do not respond to unsolicited text messages from unknown individuals.
• Refrain from making cryptocurrency investments based on advice from strangers.
• Avoid paying additional funds to recover alleged investment losses.

The Brooklyn District Attorney's office remains committed to combating cryptocurrency-related fraud and protecting the financial well-being of the community. Authorities continue to investigate the scam and pursue criminal charges against those responsible.