In June 2025, New York State Attorney General Letitia James announced the successful takedown of a transnational crypto scam ring operating through Facebook and specifically targeting Russian-speaking users.
The enforcement operation not only froze and seized assets worth over $440,000 but also uncovered a complex network based in Vietnam that manipulated social media and Telegram to carry out highly targeted scams.
The scheme began in 2024, with early signs appearing on Facebook. The scammers ran ads promising high investment returns, disguising themselves as legitimate crypto trading platforms. Users were lured into clicking the ads and joining Telegram groups.

According to investigators, the ring initially targeted Brooklyn’s Russian-speaking community and gradually expanded its reach to all five boroughs of New York City and statewide. In these Telegram groups, victims were paired with “customer service” and “advisors,” who showed fake account screenshots and transaction records to build trust and push for larger investments. The entire setup was meticulously crafted and highly deceptive.
Victims in Brooklyn alone have lost over $1 million, and the ring’s total illicit gains are believed to be significantly higher. The scammers used proxy servers to hide their identities and frequently changed domain names and email accounts to evade detection. However, these efforts ultimately failed to prevent authorities from dismantling their core network.
Crypto Assets and Digital Infrastructure Seized
During the crackdown, law enforcement froze approximately $300,000 in assets and seized an additional $140,000 worth of cryptocurrency. Multiple domains and email accounts associated with the fraud operation were also taken down. Investigators revealed that the group had spent over $1 million to cover their tracks and scrub their online presence.
While the mastermind remains at large in Vietnam, three individuals have been named in court filings, with several other conspirators under active investigation. The operation was carried out in coordination with multiple local and state law enforcement agencies, reflecting a zero-tolerance stance on cyber-financial crime.
As a long-time critic of the crypto industry, Attorney General James once again stressed the need for consumer vigilance:
“Hundreds of New Yorkers thought they were investing in safe, reliable projects, only to fall victim to a sophisticated scam. We acted decisively to stop this fraud and protect countless others from becoming victims.”
James also urged the public to be extremely cautious of investment offers promising high returns on social media. She called on platforms like Facebook to step up efforts in combating fraudulent financial advertising to avoid becoming tools for criminal activity.
A Firm Stance in a Divided Crypto Enforcement Landscape
This case also highlights the ongoing divide between James and other municipal and federal officials more supportive of crypto innovation. While the Southern District of New York has recently indicated a slowdown in crypto enforcement, James remains steadfast in her regulatory efforts, emphasizing consumer protection over industry pressure.
Notably, in the context of the Trump administration’s second term and its rollback of federal enforcement resources in the crypto sector, this action stands as a clear example of local authorities “swimming against the current” in defense of digital financial security.
New York’s successful crackdown provides a model for other jurisdictions: even amid federal uncertainty, local enforcement can play a crucial role in protecting the public. For everyday investors, the best defense remains vigilance and digital literacy—resisting temptation and staying skeptical are essential to avoiding becoming the next victim in an alluring but treacherous virtual world.