New York authorities have busted a crypto scam that tricked Russian-speaking people, recovering $140,000 and blocking $300,000 of stolen money. The scam, uncovered by Brooklyn prosecutors, the state’s attorney general, and financial regulators, cheated over 300 people, costing them more than $1 million in Brooklyn alone.
As per the reports, the scammers have used stolen crypto to fund the fake Russian ads on Facebook. They have promised big profits from crypto investments to the victims. These ads have led people to a fake website that lied about having a New York crypto license. The scammers used apps like Telegram to show victims fake earnings, convincing them to send more money.Â
After receiving the money, the scammers locked the victims out of their accounts. New York’s Attorney General Letitia James said scammers tricked people with fake crypto ads, and her team is working to stop such fraud. She warned everyone to be careful with online crypto ads. After officials told Facebook’s parent company, Meta, about the scam, they shut down over 700 related accounts.
The scam was run by people in Vietnam, showing how risky crypto can be. A report said $51 billion in crypto was used for illegal activities in the year 2024. The scammers have used artificial intelligence (AI) to make their tricks better. Other scams have used the name of Ripple’s CEO, Brad Garlinghouse, to create fake crypto giveaways, taking advantage of his fame during Ripple’s legal issues with the U.S. government.
Investigators took down over 100 fake websites and blocked the scammers’ emails. The state’s financial team also used blockchain tracking to warn people quickly. New York is still hunting for more clues to stop the scammers. Experts have advised people to check if crypto platforms are legit through official sources to stay safe.
