New York uncovers a large cryptocurrency scam hiding in Vietnam

New York Attorney General Letitia James has just announced a crackdown on a sophisticated cryptocurrency fraud network operating through social media platforms. In this campaign, authorities have frozen 300,000 dollars in digital assets, seized an additional 140,000 dollars, along with a number of domains and email addresses related to the case.

Although the Southern District of New York Federal Prosecutor's Office (SDNY) recently announced it would slow down the processing of cases related to cryptocurrency, Ms. James – one of the most vocal critics of the crypto industry – continues to pursue a tough stance. This operation was carried out in close coordination with several local law enforcement agencies, demonstrating a strong commitment to cracking down on financial fraud schemes in the digital asset space.

Facebook scams targeting Brooklyn residents

Online scams are becoming an inseparable part of the modern cryptocurrency ecosystem, and this case is the clearest evidence. New York Attorney General Letitia James has announced a strong crackdown campaign, revealing alarming details about the scale and tactics of the scam group.

According to Ms. James, a group of Vietnamese individuals has used Russian-language advertisements on Facebook to lure hundreds of investors into believing they are participating in reputable and highly profitable digital asset trading platforms. In reality, these are fake exchanges set up to steal money from victims — with total losses reaching millions of dollars.

"Hundreds of investors in New York believed they were placing their trust and money into safe, high-yield investments — but ultimately received only loss and deception. My office, in coordination with law enforcement agencies, has acted to stop these scammers and protect New York residents. I urge the public to be vigilant against online cryptocurrency investment advertisements," she emphasized.

It is currently unclear how long this scam group has been operating, but the authorities have stated that they began to notice suspicious posts on Facebook starting from October 2024, which initiated the subsequent expanded investigation.

Targeting the Russian-speaking community in Brooklyn, a cybercrime group based in Vietnam has carried out a sophisticated scam campaign that has spread across multiple boroughs of New York and the entire state. Although the total damage figure has not been disclosed, officials confirm that Brooklyn residents alone have been defrauded of at least 1 million dollars.

Although the scam group tried to cover their tracks by using proxy servers to spread advertisements on Facebook and directing victims to Telegram for private chats, the authorities still managed to trace the clues and expose the entire network.

Entities create fake cryptocurrency trading platforms with a professional interface, displaying the growth of virtual accounts to build trust and lure victims into "investing more money."

The crackdown campaign has seized $140,000 in cryptocurrency, frozen an additional $300,000 in digital assets, and simultaneously eliminated several related domains and emails. Notably, according to the police, the hacker group used at least $1 million of the victims' money to invest in identity concealment and operations — but those efforts failed to stop the investigation and may have even led to further financial losses.

A comprehensive analysis and summary of how scammers target Russian residents in New York. Despite implementing many stringent measures, the authorities in New York still do not have direct legal means to prosecute the individuals who are hiding in Vietnam – which is believed to be the operational base of the entire cryptocurrency scam network. Currently, the group behind the campaign remains above the law and no one has been arrested.

The court order has only identified the identities of three individuals, but it also affirms the involvement of "many unnamed accomplices." This indicates the complex scale and high level of organization of the network, far beyond what has been publicly disclosed.

This case is entirely in line with the commitment made by Attorney General Letitia James last year: to intensify the crackdown on cryptocurrency-related criminal activities and social media fraud. Throughout her tenure, James has been a fierce critic of the crypto industry, despite the trend of loosening and supporting digital currency from the federal government during President Trump's second term.

This hardline stance sometimes puts her at odds with some officials in New York City – which is striving to build its image as a financial technology and blockchain hub. However, the recent campaign has recorded effective coordination between the Attorney General's Office and at least three law enforcement agencies, demonstrating an increasingly clear consensus in addressing the risks posed by cross-border digital crime.

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