Brooklyn Prosecutor on the Trail of International Cryptocurrency Scams


Brooklyn District Attorney Takes Down Cryptocurrency Scams

The Brooklyn District Attorney, Eric Gonzalez, has spearheaded efforts to dismantle an organized cryptocurrency scam that spanned across the United States. The scheme involved the use of fake websites and apps to lure victims into investing in cryptocurrencies, only to block their ability to withdraw funds, resulting in a total loss of investment for the victims.

Scale and Operation Mechanism of the Scam

The cryptocurrency scam scheme operated on a large scale, covering the entire United States. Prosecuting attorney Gonzalez expressed deep concern over the increasing number of similar fraud cases occurring beyond Brooklyn’s borders. It is estimated that losses from such scams amount to billions of dollars annually, posing a serious threat to investors and financial security.

Investigation and Actions by the Attorney

Attorney Eric Gonzalez’s team launched investigative actions based on complaints from victims, including a 51-year-old woman who lost over $22,000, falling victim to a similar scam in March 2023. Analysis of cryptocurrency transactions unveiled the complexity of the fraud scheme, identifying related networks of domains and servers used by criminals.

Attorney’s Intervention and Confiscation

As part of the efforts to combat cryptocurrency-related scams, Attorney Eric Gonzalez confiscated the website coinformat.com and 20 associated domains, as well as three virtual servers used to host these sites. Over 80 domains linked to the scam were located, with coinformat.com being the central point of action for the criminals.

International Nature of the Scams

The attorney emphasized that such scams often have an international nature, making them more challenging to combat. Cryptocurrency scams are frequently supported by human trafficking from Southeast Asia, further complicating the process of apprehending perpetrators and recovering funds for victims.

The fight against cryptocurrency-related scams is becoming increasingly demanding; however, the actions taken by Attorney Eric Gonzalez offer hope for effectively eliminating such crimes and protecting potential future victims.