Facebook-Powered Crypto Scam Ring Exposed in New York City, Targeting Russian Speakers

New York Attorney General Letitia James has announced a decisive crackdown on a crypto scam ring operating through social media.

Authorities froze $300,000 in assets and seized an additional $140,000, along with domain names and email accounts linked to the fraud.

This operation, coordinated with multiple local law enforcement agencies, underscores the growing prevalence of social media-driven scams within the crypto industry.

Despite the Southern District of New York’s recent pledge to temper enforcement actions against crypto cases, AG James—an outspoken critic of the sector—has taken a firm stance.

The scam was orchestrated by a Vietnam-based group that targeted Russian-speaking investors with deceptive ads promoting fake exchanges, defrauding hundreds and stealing millions.

She noted:

“Hundreds of New York investors thought they were putting their hard-earned money in safe, high-return investments, only to be defrauded out of millions of dollars. My office, together with [law enforcement], took action to stop these scammers and protect New Yorkers. I urge all New Yorkers to be vigilant of online cryptocurrency investment ads.”

How the Scam Unfolded

The full scope of the scam remains uncertain, but investigators first flagged suspicious Facebook activity in October 2024.

The fraud ring primarily targeted Russian-speaking residents in Brooklyn, though its reach extended across all five boroughs and throughout New York State.

While total losses have not been disclosed, Brooklyn alone saw over $1 million stolen.

The perpetrators, operating out of Vietnam, masked their presence using proxies to run deceptive ads and lured victims into private Telegram chats.

There, they showcased fake exchange accounts with fabricated growth metrics to entice larger investments.

Despite their efforts to erase their digital trail, authorities uncovered and dismantled key parts of the operation—seizing $140,000 in cryptocurrency, freezing an additional $300,000, and taking down associated domain names and email infrastructure.

Investigators estimate the scammers spent at least $1 million of stolen funds attempting to cover their tracks, a costly and ultimately ineffective effort that likely diminished their returns.

Although the team behind the scam remains at large in Vietnam, a court order has named three individuals, with references to additional unnamed conspirators.

AG James, a long-standing critic of the crypto industry, has made good on her promise to aggressively pursue crypto-related fraud.

While her stance often puts her at odds with more crypto-friendly city officials, this successful multi-agency operation highlights a rare moment of coordinated enforcement under her leadership—despite broader federal moves to scale back crypto prosecutions under Trump’s second term.