Google has filed a lawsuit against a group accused of defrauding more than 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 Google Play. 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, and Google views this as an opportunity to combat bad actors engaging in crypto schemes and fraud.
The alleged scammers, Yunfeng Sun (also known as Alphonse Sun) and Hongnam Cheung (also known as Zhang Hongnim or Stanford Fischer), have been conducting their scheme since at least 2019. They used various methods to entice victims into downloading their apps, such as text message campaigns, online promotional videos, and affiliate marketing campaigns. The scammers designed the apps to appear legitimate, displaying users’ balances and earnings on their investments. However, users soon discovered that they could not withdraw their investments or supposed gains, leading to victims losing more money. One of the highlighted apps, TionRT, claimed to be a crypto exchange, but victims were unable to withdraw their funds and received no response from the scammers.
Google became aware of the fraudulent apps through reports from victims who were unable to withdraw their funds. The company actively monitors its platforms and services for potential abuses and collaborates with law enforcement agencies to address such issues. Google seeks a permanent injunction against the defendants and claims damages exceeding $75,000, including expenses related to investigating the breach and ensuring platform safety and integrity. Additionally, Google recently launched a feature that allows users to search balances of wallets on various blockchain platforms, indicating their commitment to providing a secure user experience.
The team at Sophos discovered a string of apps that load fake crypto trading interfaces pulled from remote websites and use recycled templates and descriptions. Apps such as Koproplus, Crest Pro, Momclub, Clueeio, Metaverse Ranch, and CMUS were identified as part of this scheme. The scammers used these apps to deceive users into investing in fake cryptocurrency schemes, leading to financial losses for victims. The scammers employed deceptive tactics to gain users’ trust, such as allowing initial small withdrawals but then requesting fees or minimum balances for larger withdrawals.
Google’s general counsel, Halimah DeLaine Prado, emphasized the significance of combating bad actors engaged in crypto fraud schemes. In 2023, over a billion dollars in cryptocurrency fraud and scams were reported in the U.S. alone, making it crucial for companies like Google to take action against such fraudulent activities. The lawsuit against the accused scammers serves as a precedent for future bad actors, indicating that Google does not tolerate fraudulent behavior on its platforms. By taking legal action against those responsible for deceiving users with fraudulent investment and crypto exchange apps, Google aims to protect its users and maintain the integrity of its platform.
