April 5, 2024 10:21 AM | 2 min read |
In a move to protect its users, Google (NASDAQ:GOOGL) has filed a lawsuit against two Chinese nationals accused of creating fake cryptocurrency investment apps on the Google Play store.
What Happened: The lawsuit, filed in the Southern District of New York, alleges that Yunfeng Sun (also known as Alphonse Sun) and Hongnam Cheung (also known as Zhang Hongnim or Stanford Fischer) defrauded over 100,000 users globally since at least 2019, according to a Reuters report.
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“This is a unique opportunity for us to use our resources to combat bad actors who were running an extensive crypto scheme,” said Halimah DeLaine Prado, Google’s general counsel, in a statement to CNBC. “We don’t tolerate this behavior,” she added, emphasizing the importance of setting a precedent to deter future scams.
The lawsuit details how Sun and Cheung allegedly deceived users by creating seemingly legitimate apps that displayed fake balances and promised high returns.
However, users were ultimately unable to withdraw their investments, exposing the fraudulent nature of the apps.
The scammers reportedly employed various tactics to lure victims, including sending text messages impersonating wrong numbers, creating promotional videos on social media platforms, and even using affiliate marketing schemes.
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These deceptive practices highlight the need for increased vigilance among potential crypto investors.
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Following the discovery of the fraudulent apps, Google took them down.
However, the lawsuit alleges that the defendants simply created new ones, employing various methods to mask their identities.
Google is now seeking damages exceeding $75,000 and a permanent injunction to prevent the individuals involved from accessing Google services in the future.
What’s Next: This lawsuit marks a critical juncture in the fight against online financial scams, particularly within the cryptocurrency space, and is expected to be a topic of considerable interest at the forthcoming Benzinga’s Future of Digital Assets conference on Nov. 19.
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