Google Takes Legal Action Against Alleged Cryptocurrency Scammers in New York Court

Google filed a lawsuit in New York federal court on Thursday against two Chinese individuals, alleging that they exploited its Google Play app store to defraud thousands of users through fake cryptocurrency investment applications.

According to the lawsuit, Yunfeng Sun in Shenzhen and Hongnam Cheung in Hong Kong orchestrated a scheme to deceive users into transferring money via the bogus platforms, resulting in significant financial losses for victims dating back to 2019. Google accused Sun and Cheung of racketeering and violating its terms of service and other policies. Both individuals have not responded to requests for comment on the lawsuit.

Halimah DeLaine Prado, Google's general counsel, emphasized the company's commitment to safeguarding users online and condemned the exploitation of its platforms for cryptocurrency scams. She stated in Reuters report, "This litigation is a crucial measure in holding these perpetrators accountable."

Google alleged that Sun and Cheung employed a "social engineering" tactic, using misleading text messages to entice victims to their apps. These messages purportedly initiated from random numbers but evolved into conversations that developed false friendships or romantic connections with the victims.

The purported fraudsters then persuaded victims to invest through the apps, permitting only small withdrawals of their supposed "earnings." However, when victims attempted to withdraw larger sums, they were coerced into making additional payments. Complaints from victims to their alleged "friends" or "romantic partners" resulted in their sudden disappearance.

Moreover, Google claimed that Sun and Cheung utilized YouTube videos, social media advertisements, and fabricated press releases to enhance the legitimacy of their apps. The company disclosed that it had deactivated 87 fake apps created by Sun and Cheung over the past four years, which had been downloaded by nearly 100,000 users worldwide.

The case is filed as Google LLC v. Sun in the U.S. District Court for the Southern District of New York, under case number 1:24-cv-02559