A recent investigation in New York led to the exposure of a crypto scam that defrauded over 300 Russian-speaking individuals. Authorities have recovered some funds and blocked additional assets from the scammers.
Unveiling the Scam
Brooklyn authorities, the state’s attorney general, and financial regulators uncovered a scheme that duped more than 300 individuals, with losses exceeding $1 million in Brooklyn alone.
Methods of Deception and Consequences
The scammers used stolen cryptocurrencies to fund fake Russian ads on Facebook, promising victims significant profits from crypto investments. These ads led people to a fraudulent website that falsely claimed to hold a New York crypto license. The scammers utilized apps like Telegram to display fake earnings to victims, persuading them to send more money. After receiving funds, the scammers locked victims out of their accounts.
Measures to Combat Fraud
New York Attorney General Letitia James stated that scammers misled individuals through fake crypto ads, and her team is working to stop such fraud. After officials alerted Meta, the parent company of Facebook, they shut down over 700 related accounts. Investigators also took down over 100 fake websites and blocked scammers' emails.
The conducted investigation highlights the risks associated with investing in cryptocurrencies, particularly involving unknown platforms. Experts advise checking the legitimacy of crypto platforms through official sources to safeguard against fraud.
