Earlier today, Google started legal action against a group of people it states planned an enormous cryptocurrency scam that touched more than 100,000 users around the world.
A lawsuit was filed today specifically targeting the alleged illegal distribution of investment and cryptocurrency trading apps through the Google Play Store.
The lawsuit, which Google claims is a first in the tech industry to take on crypto scams head-on, aims to set legal precedents for the safety of its users. According to the lawsuit, the defendants lied to Google about who they were, where they were, and what the apps they uploaded to Google Play were truly about.
Combatting Crypto App Fraud
Although suing the accused scammers for breach of contract, Google is also using the Racketeer Influenced and Corrupt Organizations (RICO) law. At least 87 fake apps were released, misleading users into believing they were real, according to the claim.
Google’s general counsel, Halimah DeLaine Prado, talked to CNBC Crypto World about the significance it is to battle malicious individuals, stating that This is a unique opportunity for us to use our resources to actually combat problematic actors.
The reason for this legal move is that the U.S. lost over $1 billion in 2023 because of crypto fraud. Beyond protecting users, Google’s case is also meant to prevent people from committing fraud in the future.
According to the charges, the suspects, Yunfeng Sun and Hongnam Cheung, allegedly contacted victims through Google Voice text messages, YouTube promotional videos, and affiliate marketing starting in at least 2019.
Appears to be a cryptocurrency trading platform, apps like TionRT were created to give off a sense of reliability, even letting users make limited withdrawals at first to gain their confidence. Users were tricked into thinking they could access the funds, though, by extra payment requests or minimum amount withdrawal rules.
Google took steps to get rid of the apps after discovering the fraudulent actions, the lawsuit states. Despite this, the crooks kept making new ones to avoid being located.
As a result of the costs of investigating these breaches and putting in place safety measures, Google reports it has suffered declines exceeding $75,000. Google is asking for a permanent order that would prevent the accused and their friends from using Google services and making accounts.
