New York officials reported an investigation that resulted in the recovery of $140,000 and a cryptocurrency investment scam using fake ads on social media frozen $300,000 of stolen funds.
In a notice Wednesday, authorities from the Brooklyn District Attorney’s Office, the New York State Attorney’s Office and the New York State Department of Financial Services explain They undermined a plan to deceive members of the Russian community in the state and the country.
According to officials, scams used cryptocurrencies to pay forged digital asset investment ads on Facebook and other platforms, resulting in a seizure of $140,000 and a freeze of $300,000 worth of cryptocurrencies.
“These scammers target Russian speakers on Facebook, tempting ads and my office along with DFS, Brooklyn District Attorney’s Office has taken steps to stop these scammers and protect New Yorkers,” said New York Attorney General Letitia James. “I urge all New Yorkers to be alert to online cryptocurrency investment ads.”
https://www.youtube.com/watch?v=T06MVWZ6NGM
Although the investigation resulted in the recovery or freezing of more than $440,000 of stolen funds, authorities reported that the Brooklyn area alone caused more than $1 million in losses and identified more than 300 victims.
The scammers allegedly used a fake crypto investment website, claiming to have obtained Bitlicense, a license to provide services to cryptocurrency companies in New York State.
Related: Spokane, Washington’s second largest city, bans cryptocurrency
Many malicious ads on social media (called “black hat” ads) are in Russian, mainly on Facebook. Facebook’s parent company Meta reportedly closed more than 700 ads after learning of the investigation.
Encrypted users are still susceptible to scams
Chain analysis report has It’s about $51 billion Among the illicit transaction volume involving digital assets in 2024. Despite a 35% drop in payments related to ransomware attacks, there are concerns that AI will increasingly use it to facilitate scams.
In other infamous scams Social media advertising hired For fake crypto investments, including fake XRP airdrop Riple CEO Brad Garlinghouse. In addition to becoming a key figure in the cryptocurrency industry, the CEO has also attracted the attention of Ripple’s legal tangled relationship with the SEC.
