Brooklyn’s Crypto Hunter: Inside the Cross-Timezone Takedown of a Global Scam Network
TREE NEWS reports: In early October, Alona Katz, head of the Brooklyn District Attorney’s virtual currency unit, led one of the office’s most extensive international enforcement actions to date. The operation, spanning three time zones, dismantled a network of over 240 fraudulent crypto websites and 112 servers operated by an Eastern European cybercrime group that had scammed Brooklyn residents out of tens of millions of dollars.
The unit, established in 2023, was created in response to a surge in crypto fraud complaints that local police and federal agencies were ill-equipped to handle. Many victims, often from Russian-speaking immigrant communities in Brighton Beach and Sheepshead Bay, lost amounts between a few hundred and tens of thousands of dollars—sums too small for federal attention but devastating for individuals. Katz’s team turned to blockchain forensics, tracing bitcoin and tether flows across wallets, and collaborated with exchanges to blacklist fraudulent addresses.
From Whack-a-Mole to Infrastructure Strikes
Initially, the unit focused on victim protection and site seizures, but Katz soon realized that taking down individual domains was like playing whack-a-mole. In June 2024, the team seized 70 scam domains, yet calls from new victims kept coming. The scammers simply moved to new exchanges and websites.
This year, Katz shifted strategy to target the underlying server infrastructure. By identifying and seizing servers hosted in Eastern Europe, the team aimed to cripple the entire operation. The October action, coordinated with the FBI, was the culmination of months of preparation. No arrests were made, but the office described it as one of the largest network disruptions by a local prosecutor’s office.
Implications for Global Crypto Enforcement
The case highlights the growing role of local law enforcement in combating cross-border crypto crime. With FBI data showing U.S. crypto scam losses reached $11.4 billion in 2025—triple the level three years ago—and federal agencies often prioritizing larger cases, local DA offices are stepping into the void. Katz’s approach—combining blockchain analytics, subpoenas to exchanges, and international cooperation—offers a blueprint for other jurisdictions.
However, challenges remain. Most scam operations are based overseas, making arrests difficult. Asset recovery is limited; Katz’s team has returned about $300,000 to victims so far, a fraction of total losses. Moreover, the scammers adapt quickly, exploiting new platforms and tactics.
Looking ahead, the Brooklyn model may inspire other local prosecutors to build specialized crypto units. But without stronger international legal frameworks and greater federal support, the fight against transnational crypto fraud will remain an uphill battle. As Katz puts it, “My job is to deliver bad news.” Yet with each takedown, the hope is that fewer victims will need to hear it.
