Hacking News
Crypto Scammers Target Victims Again with Fake Recovery Offers
Brooklyn prosecutors uncovered a second fraud targeting the same investors after dismantling infrastructure behind a multinational crypto scam. The fraudsters approached the same victims weeks later, promising to recover their losses. The investigation, which has been underway for three years, identified a concentration of victims in Brooklyn, home to a large Russian-speaking population. Some victims lost their entire life savings, according to prosecutors. Investigators traced the operation to Russian-language Facebook ads promoting cryptocurrency investment opportunities. People who responded to the ads received phone calls from individuals posing as Russian-speaking investment advisers. The purported advisers then directed them to cryptocurrency trading websites, helped them create accounts, and instructed them to purchase digital assets. Victims subsequently transferred cryptocurrency to wallet addresses linked to the investment platforms, believing their money was being deployed in legitimate investments. The deception became apparent weeks or months later when investors attempted to withdraw their funds. Some discovered their accounts were locked, while others were told they needed to pay additional fees or taxes before the criminals could release their money. The criminals then exploited the losses they had created.