CNBC reports that Google has taken legal action against a group of individuals it accuses of defrauding more than 100,000 people worldwide by distributing counterfeit crypto apps through the Google Play Store.
The lawsuit was filed April 4 in the Southern District of New York. The move represents Google's efforts to combat cryptocurrency fraud and aims to set a legal precedent to protect users.
civil lawsuit
The defendants, identified in the complaint as Yunfeng Sun, also known as Alphonse Sun, and Hongnam Chan, also known as Chan Hong-nim or Stanford Fisher, have created at least 87 fake investment and cryptocurrency exchange apps on Google Play. He is said to have planned to commit fraud by posting the information.
According to Google's complaint, these individuals provided false information regarding their identity, location, and nature of the app.
Google's General Counsel Halima Delaine Prado emphasized the importance of this case in addressing crypto fraud that has caused significant losses in the United States. He emphasized the company's commitment to leveraging its resources to protect users and deter fraud.
The lawsuit involves civil claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) and breach of contract claims. The complaint details the methods the defendants used to attract users to their apps, including text message campaigns, online videos, and affiliate marketing strategies.
scam app
Although the app appeared legitimate, including displaying investment balances and profits, users were reportedly unable to withdraw funds. Some have been misled and made to pay additional fees to access their earnings.
The complaint also describes how the alleged fraudsters attempted to normalize apps such as TionRT by facilitating small initial withdrawals and publishing news releases. There is. However, when users tried to get back their larger investments, there was no response.
Google has responded to this fraud by strengthening its cybersecurity practices, including partnering with law enforcement and establishing a team dedicated to identifying fraud.
The company claims it has incurred more than $75,000 in damages in investigation costs and safety enhancement costs. Through this lawsuit, Google is seeking damages and a permanent injunction barring the defendants and their affiliates from accessing Google services or creating accounts.
The lawsuit is part of Google's broader strategy to protect its users and ensure the integrity of its platform as online fraud and cybersecurity threats increase.