Search Engine Giant Seeks to Protect Users, Set Legal Precedent
Key Takeaways:
- Google sued a group of crypto scammers for allegedly defrauding over 100,000 people globally.
- The scammers uploaded fake investment and crypto exchange apps to Google Play.
- This lawsuit is the first of its kind by a tech company against crypto scammers.
- Google aims to set a legal precedent to protect users from similar schemes in the future.
- The scammers allegedly created at least 87 fraudulent apps and used various tactics to lure victims.
In a move marking a first among tech companies, Google filed a lawsuit against a group of crypto scammers on Thursday. The lawsuit alleges the scammers defrauded over 100,000 people worldwide by uploading fake investment and crypto exchange apps to Google Play.
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Google Sues Crypto Scammers Over Fake Apps
Google’s lawsuit aims to not only recover damages from the scammers but also establish legal grounds to protect users from similar schemes in the future. The company claims the defendants uploaded at least 87 fraudulent apps to Google Play after making “multiple misrepresentations” about their identities and the purpose of the apps.
“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, general counsel at Google.
The lawsuit identifies Yunfeng Sun and Hongnam Cheung as the masterminds behind the operation. The duo allegedly lured victims into downloading their apps through text messages, online videos, and affiliate marketing campaigns.
The apps were designed to appear legitimate, allowing users to see fake balances and purported returns on investments. However, users were ultimately unable to withdraw their funds.
“Unfortunately, as new technology arises, bad actors exploit that technology to try to defraud users,” said DeLaine Prado. Google says it has teams dedicated to detecting and stopping such fraudulent activity.
One of the apps highlighted in the lawsuit is TionRT, a fake crypto exchange app uploaded to Google Play in 2022. Similar to other schemes, victims were lured into downloading the app with promises of easy returns. The app was eventually shut down after Google received complaints from users.
Google says it was alerted to the fake apps by victims who were unable to withdraw their invested funds. The company also works with law enforcement in certain cases.
The lawsuit seeks a permanent injunction against the defendants and their associates, preventing them from accessing Google services and creating new accounts. Google is also seeking compensation for damages incurred during the investigation.
The Lawsuit’s Goals
The lawsuit seeks a permanent injunction against the defendants and their associates. This would prevent them from accessing Google services and creating new accounts to continue their scams. Google is also seeking compensation for the damages incurred during the investigation.
This lawsuit signifies Google’s proactive approach to combating fraud on its platforms and sets a potential precedent for the tech industry in its fight against crypto scams.