Google takes aim at cryptocurrency fraudsters, becoming the first internet giant to do so. The business said the con artists had utilized its platforms to deceive customers.
In the Southern District of New York, Google has launched legal action against a Chinese ring of con artists, claiming that they advertised and distributed fake cryptocurrency applications on Google Play.
Taking legal action against crypto fraudsters is a big step towards protecting users, according to Alphabet Inc., which claims to be the first internet firm to do so.
In a lawsuit filed by Google, the tech giant said that two individuals, Yunfeng Sun and Hongnam Cheun, had deceived consumers by publishing 87 fake investment and cryptocurrency trading applications on Google Play, as reported by CNBC on April 4.
According to the business, the two were involved in a complex operation “from at least 2019,” including Google Voice-based text messaging campaigns, YouTube promotional videos, and affiliate marketing initiatives that paid users a fee for recruiting new users. The goal was to get victims to download the applications.
Google is now suing the defendants in civil court under the Racketeer Influenced and Corrupt Organizations (RICO) Act, which imposes harsh financial fines and jail sentences of up to 20 years on participants in organized crime syndicates. This comes after the charges that Google has already filed.
Defendants “made several misrepresentations” about their name and location in order to post their fake applications to Google Play, according to the company’s breach of contract charges.
According to Halimah DeLaine Prado, general counsel for Google, the internet giant may show its position on crypto crimes and deploy its resources against bad actors via the case.
“In 2023 alone, the United States witnessed cryptocurrency fraud and frauds totaling over a billion dollars. This action gives us the opportunity to safeguard our consumers and send a message to criminal actors that we will not accept this kind of behavior,” DeLaine said.
In addition to seeking general damages and a permanent injunction to prohibit the defendants from establishing accounts on its platforms or using the company’s services, Google claims that it incurred losses exceeding $75,000 in order to investigate the problem.
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