On the Google Play Store, the cryptocurrency scammers posted 87 fake apps.
In its lawsuit, Google refers to both contract violations and the RICO statute.
The general counsel for Google highlights the company’s dedication to thwarting bitcoin theft.
Google, a global leader in technology, filed a lawsuit on Thursday, April 4, against a group of con artists who had uploaded phony cryptocurrency exchange and investing apps to the Google Play Store, scamming over 100,000 people globally.
Google Tightens Up on Crypto Scammers
With this move, Google established a legal precedent for user safety and claimed the title of being the first tech company to take action against cryptocurrency scammers. As stated in Google’s lawsuit:
The court stated that the defendants made many misrepresentations to Google to upload their fraudulent apps on Google Play. These misrepresentations included falsifying their location, identity, and the type and nature of the application being uploaded.
Google, a division of Alphabet, is suing a group of con artists, citing both contract violation and the Racketeer Influenced and Corrupt Organizations (RICO) statute. According to the business, the con artists planned a strategy in which they produced and distributed at least 87 phony applications with the intention of tricking consumers.
Google’s general counsel, Halimah DeLaine Prado, saw the case as a chance to stop fraudulent activity in the Bitcoin market. In her speech to CNBC Crypto World, she underlined the serious financial consequences of cryptocurrency fraud, estimating losses of over a billion dollars in the United States in 2023 alone. Prado emphasized Google’s resolve to utilize legal action to safeguard consumers and discourage fraudulent activity in the future.
Information about the Scam
The Google’s lawsuit mentions that the con has been going on since 2019 and names Yunfeng Sun, a.k.a. Alphonse Sun, and Hongnam Cheung, a.k.a. Zhang Hongnim or Stanford Fischer, as the alleged con artists.
The two individuals allegedly employed three main strategies to entice people into downloading their apps. First, they used text-messaging campaigns via Google Voice to target victims primarily in the United States and Canada. Additionally, they shared online videos on YouTube and other sites. Lastly, they conducted affiliate marketing campaigns that paid users commissions for referring others. These tactics were designed to maximize the reach of their fraudulent scheme.
The lawsuit claims that Sun, Cheung, and their accomplices created the apps with the intention of giving users the appearance of legitimacy by showing them apparent balances and investment returns. Users discovered, though, that they were unable to take their investments or the earnings they thought they had made out.
According to the lawsuit, the defendants allegedly let users make tiny initial withdrawals from the apps to foster consumer trust. Certain users were said to have been misled into incurring further financial losses by being told they had to pay a fee or keep a minimum balance to access their cash. Google investigated This.
Implementing Corrective Actions,
Google was informed of the existence of fraudulent apps by victims who were unable to withdraw their money.
“Our committed cybersecurity team monitors all of our platforms and services to find ways to improve user protection,” said DeLaine Prado. She added that Google occasionally works with law enforcement.
Google filed a complaint alleging that the con artists quickly created new apps and published them to GooglePlay whenever the firm withdrew the bogus apps. They used a variety of accounts and computer network infrastructures to hide their identities, giving Google misleading information. Additionally, Google is aiming to permit adverts for Bitcoin ETFs on its network.
