The investigation into a fraudulent cryptocurrency scheme began in October 2024 when investigators identified a fake website, WhalesTrade.com, displaying a counterfeit BitLicense certificate.

This scam involved deceptive Russian-language Facebook ads promoting fake cryptocurrency investment platforms, resulting in over $1 million in losses for Brooklyn residents alone.

More than 300 victims were identified during the investigation, with total losses exceeding $1 million, highlighting a fraction of the broader $5.8 billion in crypto-related fraud reported in 2024 by the FBI.

The District Attorney's office worked to alert many victims to the fraud in order to prevent further financial losses.

Brooklyn District Attorney Eric Gonzalez emphasized the importance of collaboration among law enforcement to combat crypto scams and protect investors.

The investigation, involving the Brooklyn District Attorney’s office, the New York State Attorney General’s office, and the New York State Department of Financial Services, led to the recovery of $140,000 and the freezing of stolen funds.

Law enforcement executed warrants that resulted in the seizure of over 100 domains and $140,000 in cryptocurrency, which can now be returned to the victims.

Meta, the parent company of Facebook, played a role in shutting down over 700 accounts associated with the scam's advertising after being alerted to the fraudulent activity.

Attorney General Letitia James has a history of opposing cryptocurrency and has vowed to continue cracking down on crypto-related crime in New York.

Despite the successful crackdown, the entire scam team remains at large in Vietnam, and local law enforcement lacks a means to pursue them directly.

The court order issued named three members of the scam network, indicating that there are additional unnamed individuals involved.

Residents can verify the legitimacy of cryptocurrency exchanges or report suspicious activities through the Department of Financial Services and the Attorney General's Office.