New York authorities, in cooperation with the Brooklyn District Attorney's Office and the New York State Department of Financial Services, have seized over $440,000 as part of the fight against a multi-layered cryptocurrency fraud scheme.
Fraud Scheme and Its Impact
As a result of the operation, $140,000 in digital assets was seized while an additional $300,000 was frozen in crypto accounts linked to the scheme.
The scammers operated a malicious advertisement network targeting primarily Russian-speaking residents in Brooklyn and other regions across the U.S.
Deceptive Tactics and Victim Identification
The investigation, which began in October 2024, uncovered a fake website, WhalesTrade.com, misrepresenting BitLicense certification. The platform was only one of the numerous fraudulent schemes that used Russian-language advertisements and impersonated personalities to create the illusion of legitimate interactions.
Victims faced the scam when trying to withdraw their funds, confronting extortion with bogus fees and taxes.
Authorities' Actions and Investigation Outcomes
During the operation, more than 700 fake Facebook accounts linked to the scam were shut down, and over 100 fraudulent domains were exposed. The scammers used 'black hat' advertisers based in Vietnam to bypass Facebook's restrictions, paying them with stolen crypto.
A court order led to the freezing of $300,000 to prevent further malpractices.
The investigation underscores the issue of fraud in the cryptocurrency sector, utilizing digital advertising manipulations to deceive investors. Authorities continue to actively combat such schemes, protecting consumers.
