New York officials have reported an investigation that uses fake social media ads to freeze $140,000 in cash and $300,000 in stolen funds as part of a cryptocurrency investment scam.
In a notice Wednesday, authorities from the Brooklyn District Attorney’s Office, the New York State Attorney’s Office and the New York State Financial Services Department said they disrupt plans to fraud members of the Russian community around the state and across the country.
Officials say the fraudsters used cryptocurrency to pay for fake digital asset investment ads on Facebook and other platforms, seizing $140,000 and freezing $300,000 worth of crypto, according to the company.
“These scammers have targeted Russian speakers on Facebook with engaging ads and have taken action to stop my office and these scammers along with DFS and the Brooklyn District Attorney’s Office and protect New Yorkers.” “I urge all New Yorkers to be vigilant about cryptocurrency investment ads online.”
https://www.youtube.com/watch?v=t06mvwz6ngm
The investigation has recovered or frozen more than $440,000 in stolen funds, but authorities have reported that the scheme caused more than $1 million in losses in the Brooklyn area alone, with more than 300 victims identified.
The scammer reportedly used a fake Crypto Investment website that claims to have secured Bitlicense, a license required by Crypto companies providing services in New York.
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Many of the malicious social media ads called “black hat” ads were in Russian and mostly on Facebook. Facebook’s parent company Meta reportedly closed more than 700 ads after learning about the investigation.
Cryptographic users are still vulnerable to fraud
Chainalysis reported that in 2024 the volume of illegal transactions involving digital assets was approximately $51 billion. Payments related to ransomware attacks have dropped by 35%, but there are concerns about the increased use of artificial intelligence to promote fraud.
Among other infamous scams that adopted social media ads for fake crypto investments were fake XRP airdrops impersonating Ripple CEO Bloodgaring House. In addition to being a prominent figure in the crypto industry, the CEO has also attracted attention for Ripple’s legal entanglement with the Securities and Exchange Commission.
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