FBI and Brooklyn Attorney Dismantle Infrastructure of Crypto-Fraud Network Targeting Russian-Speakers

Infrastructure dismantling

On 14 October, Brooklyn prosecutor Eric Gonzalez said that law enforcement, with the support of the FBI's Virtual Currency Unit, had deactivated a major cryptocurrency fraud infrastructure. Operations have resulted in the neutralization of 241 websites and 112 servers hosted in Eastern Europe and the United States, targeting victims' data servers and network software.

Methods used by the network

According to the Journal du Coin, the scheme was aimed at Russian-speaking users residing in the United States and would have diverted tens of millions of dollars. When they attempted to withdraw their funds, victims faced account blockages or requests for additional payments presented as taxes or fees. The network then proposed to recover funds for new payments, a technique called "double punishment" in the "pig-butchering" files.

Strategy of the US authorities

Before this action, the Virtual Currency Unit had already seized or disturbed 400 domains associated with crypto investment fraud. In the face of the rapid increase in substitution sites, investigators chose to focus their efforts on servers, believing that this approach would make the relaunch of new platforms more costly for fraudsters. The authorities seized about $300,000** and are continuing their investigations to recover other funds. Prosecutor Gonzalez said that some victims have lost all of their savings, without arrest announced to date.

Wider context of cryptocurrency-related cybercrime

The FBI annual report for 2025 indicates that cryptocurrency scams accounted for approximately 84% of a total of $8.65 billion in losses attributed to investment fraud. All cybercrime categories combined, cryptocurrency losses amounted to $11.37 billion, or about 54 per cent of total losses. The same organization reported that it had seized $17 billion under Operation Blackout, stressing the importance attached to combating the illicit activities of the sector.

Future perspectives and challenges

This represents an evolution in the way US authorities approach crypto fraud networks, targeting technical infrastructure rather than mere domain names. According to the Journal du Coin, it remains to be seen whether this strategy will slow down the networks that have so far been able to regenerate rapidly. Monitoring investigations and possible future arrests will be crucial to measuring the effectiveness of this approach and the ability of authorities to protect investors from new forms of digital fraud.