Google Initiates Legal Action Against Cryptocurrency Fraudsters for Creating Deceptive Applications on Google Play

Google has initiated legal action against a group accused of deceiving over 100,000 individuals globally by uploading deceptive investment and cryptocurrency exchange applications to Google Play.

The lawsuit, submitted in the Southern District of New York, alleges that the defendants engaged in numerous misrepresentations to mislead Google and facilitate the upload of their fraudulent applications to Google Play, as reported by CNBC.

These misrepresentations involved falsifying details regarding their identity, location, and the nature of the applications being submitted.

Google’s lawsuit encompasses civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) statute, in addition to breach of contract claims.

Scammers Released At Least 87 Fraudulent Applications

The company claims that the scammers developed and released at least 87 fraudulent applications to mislead users.

“This presents a unique opportunity for us to leverage our resources to combat malicious actors who were orchestrating an extensive cryptocurrency scheme to defraud some of our users,” stated Halimah DeLaine Prado, general counsel at Google.

“In 2023 alone, we observed over a billion dollars in cryptocurrency fraud and scams within the U.S., and this [lawsuit] enables us to not only utilize our resources to safeguard users but also to set a precedent for future wrongdoers that we do not condone this conduct.”

The alleged scammers, identified as Yunfeng Sun (also known as Alphonse Sun) and Hongnam Cheung (also known as Zhang Hongnim or Stanford Fischer), are reported to have executed their scheme since at least 2019.

They utilized various tactics to lure victims into downloading their applications, including text message campaigns, online promotional videos, and affiliate marketing strategies.

The team at Sophos has identified a series of applications that all display fake cryptocurrency trading interfaces sourced from remote websites, employing recycled templates and descriptions. These were identified as Koproplus, Crest Pro, Momclub, Clueeio, Metaverse Ranch, and CMUS.

— Webacy (@mywebacy) August 12, 2023

According to the lawsuit, the scammers crafted the applications to seem legitimate, showcasing users’ balances and purported earnings on their investments.

However, users quickly realized that they were unable to withdraw their investments or alleged profits.

To build users’ trust, the scammers permitted small initial withdrawals but subsequently demanded fees or minimum balances for larger withdrawals, resulting in victims incurring further losses.

Fraudulent Exchange Application TionRT Introduced on Google Play

One of the applications mentioned in the lawsuit is TionRT, which claimed to function as a cryptocurrency exchange.

The application, uploaded to Google Play in 2022 by a developer account linked to Sun, utilized text messages and social media platforms to attract victims with promises of additional earnings.

Victims who were unable to retrieve their funds received no communication from the scammers, leading to the eventual closure of the platform.

Google became aware of the fraudulent applications through reports from victims who could not access their funds.

The company operates a dedicated cybersecurity team that actively monitors its platforms and services for potential abuses.

In certain instances, Google collaborates with law enforcement agencies to tackle such matters.

Google is seeking a permanent injunction against the defendants and claims damages exceeding $75,000, which encompass costs related to investigating the breach and ensuring the safety and integrity of the platform.

Additionally, Google recently introduced a feature that allows users to search wallet balances on Bitcoin, Arbitrum, Avalanche, Optimism, Polygon, and Fantom blockchains.

The post Google Files Lawsuit Against Crypto Scammers for Launching Fraudulent Apps on Google Play appeared first on Cryptonews.