Google Takes Legal Action Against Cryptocurrency Scammers
In a bold move to safeguard its users, Google has initiated legal proceedings against a cohort of cryptocurrency swindlers accused of deploying deceitful investment and crypto exchange applications on the Google Play store. The tech behemoth alleges that these fraudulent apps have swindled over 100,000 individuals worldwide.
By launching this lawsuit, Google positions itself as the first major tech company to confront crypto scammers head-on, aiming to forge a legal framework that will shield users from similar deceptions in the future. The legal action, which includes civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act, accuses the defendants of providing false information about their identities, whereabouts, and the nature of the apps they uploaded to Google Play.
The Alphabet subsidiary has identified at least 87 sham apps that were designed to trick users into believing they were making legitimate investments and earning returns. The lawsuit, filed in the Southern District of New York, names Yunfeng Sun and Hongnam Cheung as the primary suspects in this elaborate ruse that has been ongoing since 2019.
According to Google’s general counsel, Halimah DeLaine Prado, the company has observed over a billion dollars’ worth of cryptocurrency fraud in the U.S. in 2023 alone. Google’s litigation is not just a protective measure for its users but also serves as a warning to potential fraudsters that such malicious activities will not be tolerated.
The defendants reportedly employed a variety of tactics to lure victims, including text message campaigns via Google Voice, promotional videos on YouTube and other platforms, and affiliate marketing strategies that rewarded users for recruiting others. The apps, while appearing legitimate, did not allow users to withdraw their investments or the supposed profits they had made.
To further create an illusion of credibility, the scammers permitted initial withdrawals of small amounts, only to later impose withdrawal fees or minimum balance requirements, which effectively conned victims out of even more money. Google’s cybersecurity team, vigilant in their efforts to detect and combat fraud, was alerted to the scam by victims who were unable to retrieve their funds.
The complaint details how the scammers would react to Google’s removal of their apps by creating new ones and uploading them again, using various techniques to hide their identities and deceive Google in the process. Google has incurred significant expenses in investigating these breaches and enhancing safety measures, claiming damages in excess of ,000. The company seeks a permanent injunction to prevent the defendants and their associates from creating Google accounts or accessing Google services.
As the legal battle unfolds, Google remains committed to protecting its platform and its users from the ever-evolving threats posed by unscrupulous actors in the digital realm.
