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Google Takes Legal Action Against Alleged Crypto Scammers
Google has recently initiated legal proceedings against a group of individuals accused of defrauding more than 100,000 people worldwide by distributing counterfeit cryptocurrency applications on its Google Play store.
The lawsuit, filed in the Southern District of New York on April 4, signifies Google’s commitment to combating crypto scams and establishing a legal precedent for user protection.
Civil Claims Lawsuit
The defendants, Yunfeng Sun (Alphonse Sun) and Hongnam Cheung (Zhang Hongnim or Stanford Fischer), purportedly orchestrated a fraudulent scheme by uploading 87 fake investment and crypto exchange apps on Google Play. These individuals allegedly provided false information about their identities, locations, and app functionalities.
Halimah DeLaine Prado, Google’s general counsel, emphasized the lawsuit’s importance in addressing crypto fraud, which has led to significant losses in the United States. She underscored Google’s dedication to utilizing its resources to safeguard users and combat fraudulent activities.
The legal action is based on civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act, as well as breach of contract claims. The lawsuit outlines the defendants’ tactics for attracting app users, such as text messaging campaigns, online videos, and affiliate marketing strategies.
Deceptive Practices
Despite the counterfeit apps’ appearance of legitimacy, including simulated investment balances and returns, users reportedly encountered difficulties in withdrawing their funds. Some individuals were even coerced into paying additional fees to access their supposed earnings.
The complaint also details how the alleged scammers attempted to legitimize their apps, like TionRT, by facilitating small initial withdrawals and issuing press releases. However, when users sought to retrieve larger sums, they were met with silence from the perpetrators.
In response to these deceptive practices, Google has bolstered its cybersecurity measures by collaborating with law enforcement agencies and establishing a specialized team to identify and combat fraud. The company asserts incurring damages exceeding $75,000 due to investigative efforts and security enhancements.
Through the ongoing lawsuit, Google aims to secure damages and obtain a permanent injunction barring the defendants and their associates from using Google services or creating accounts.
This legal action falls within Google’s broader strategy to safeguard its users and preserve the integrity of its platform amid a rising tide of online scams and cybersecurity threats.
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