New York Halts $300,000 Crypto Scam, Recovers $140,000

- Over $1 million in losses and more than 300 victims identified. - Multiple New York authorities collaborated to combat the scheme. On June 18, 2025, Cointelegraph reported that New York authorities froze $300,000 and recovered $140,000 in connection with a cryptocurrency scam. This scam utilized fake digital asset investment advertisements on social media and specifically targeted the Russian-speaking community in the Brooklyn area. As a result of the scheme, authorities identified over $1 million in losses and more than 300 victims. According to the report, scammers used cryptocurrency to fund deceptive advertisements, primarily on Facebook, which then directed victims to a fraudulent cryptocurrency investment website. Furthermore, this website falsely claimed it had secured a BitLicense, an essential credential for crypto firms operating in New York. Officials from the Brooklyn District Attorney’s office, the New York State Attorney’s office, and the New York State Department of Financial Services played pivotal roles in uncovering and addressing the scam. In response to the investigation, Meta, Facebook's parent company, also reportedly shut down over 700 related "Black Hat" advertisements, which were predominantly in Russian. This incident contributes to a broader trend of increasing online cryptocurrency scams. For example, Chainalysis reported that in 2024, illicit transaction volume involving digital assets reached approximately $51 billion. Although payments related to ransomware attacks declined by 35%, concerns are simultaneously growing about new scams facilitated by artificial intelligence. New York Attorney General Letitia James emphasized the collective action authorities took to protect New Yorkers from such frauds, and she also urged the public to remain vigilant regarding online cryptocurrency investment advertisements. On June 18, The Block also reported on the joint investigation and its outcomes. On the same day, Hoodline reported similar details, and the New York State Department of Financial Services also published information on the investigation and its results on June 18. On May 19, 2025, CoinMarketCap reported that as of 12:00 UTC, Ethereum (ETH) was trading at $3,214, and its 24-hour trading volume had increased by 2.3%.