The Brooklyn District Attorney's Office has confiscated 70 domains used in a scheme to defraud the Russian community. The fraudulent operation involved misleading Facebook advertisements featuring a deepfake of Tesla's CEO, Elon Musk. A total of $5 million was lost by more than 20 Brooklyn residents and other victims across the country.
Seizure of 70 Domains in Crypto Scam
On Thursday, the Brooklyn District Attorney's Office revealed that its Virtual Currency Unit had successfully disrupted a cryptocurrency scam that specifically targeted members of the Russian community. According to the announcement:
Individuals were enticed to invest in what turned out to be fraudulent schemes after responding to Facebook ads promoting investment opportunities. They would then receive a call from a supposed investment advisor who spoke Russian, guiding them through cryptocurrency transactions on fake websites.
The announcement further disclosed that more than 20 investors in Brooklyn lost a collective sum of over $1 million, with additional victims nationwide losing an additional $4 million. The network of 70 interconnected domains associated with the scam has since been shut down.
The fake advertisements frequently featured a deepfake of Elon Musk endorsing cryptocurrency investments, as described by the Brooklyn District Attorney's Office. Victims were approached by "investment advisors" who conversed in Russian and led them to create accounts on deceitful platforms. Following the transfer of funds, victims discovered they were locked out of their accounts or faced unexpected charges.
The announcement highlighted:
The belief that the websites originated in Russia, with scammers conversing in Russian to establish rapport and trust with their victims.
Due to the challenges of recovering stolen funds from outside U.S. jurisdiction, the strategy of the DA's Office has revolved around disrupting the scam by taking control of the fraudulent websites.
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