Google has filed a lawsuit against a group accused of defrauding over 100,000 individuals worldwide by uploading fraudulent investment and crypto exchange apps to Google Play. The lawsuit, filed in the Southern District of New York, alleges that the defendants engaged in multiple misrepresentations to deceive Google and upload their fraudulent apps to the platform. These misrepresentations include falsifying information about their identity, location, and the nature of the applications being uploaded. Google’s lawsuit includes civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) law, as well as breach of contract claims. The scammers created and published at least 87 fraudulent apps to deceive users.
The alleged scammers, identified as Yunfeng Sun (also known as Alphonse Sun) and Hongnam Cheung (also known as Zhang Hongnim or Stanford Fischer), are said to have conducted their scheme since at least 2019. They employed various methods to entice victims into downloading their apps, including text message campaigns, online promotional videos, and affiliate marketing campaigns. The scammers designed the apps to appear legitimate by displaying users’ balances and earnings on their investments. However, users soon discovered that they could not withdraw their investments or supposed gains. To gain users’ trust, the scammers allowed small initial withdrawals but then requested fees or minimum balances for larger withdrawals, leading to victims losing more money. One of the apps highlighted in the lawsuit is TionRT, which claimed to be a crypto exchange. The app used text messages and social media platforms to entice victims with promises of earning extra money.
Victims who were unable to withdraw their funds received no response from the scammers, leading to the eventual shutdown of the platform. Google became aware of the fraudulent apps through reports from victims who were unable to withdraw their funds. The company has a dedicated cybersecurity team that actively monitors its platforms and services for potential abuses. In some cases, Google collaborates with law enforcement agencies to address such issues. Google seeks a permanent injunction against the defendants and claims damages exceeding $75,000, which include expenses related to investigating the breach and ensuring platform safety and integrity. Google also recently launched a feature allowing users to search balances of wallets on various blockchain platforms.
The lawsuit filed by Google against the alleged scammers is aimed at combating bad actors who were running an extensive crypto scheme to defraud users. In 2023 alone, over a billion dollars within the U.S. was lost to cryptocurrency fraud and scams. Google’s general counsel, Halimah DeLaine Prado, stated that the lawsuit serves as a precedent to future bad actors that this behavior will not be tolerated. The scammers used various methods to entice victims, including texts, online videos, and affiliate marketing. They designed the apps to look legitimate but victims soon discovered they could not withdraw their investments.
Google is actively monitoring its platforms for potential abuses and collaborates with law enforcement agencies to address such issues. The company seeks a permanent injunction against the defendants and claims damages exceeding $75,000. Meanwhile, Google continues to enhance its services, such as launching a feature allowing users to search balances of wallets on different blockchain platforms. The fraudulent apps uploaded to Google Play caused significant losses to victims and highlighted the importance of vigilance against online scams.
