Google has recently taken legal action against a group of individuals involved in a significant cryptocurrency scam that affected over 100,000 users worldwide.

The lawsuit, filed today, focuses on the alleged fraudulent distribution of investment and crypto exchange apps on the Google Play Store. Google is leading the charge as the first tech company to address crypto scammers, setting a precedent to protect its users from such schemes. The suit accuses the defendants of misleading Google with false information about their identity, location, and the nature of the apps uploaded to Google Play.

Google is utilizing the Racketeer Influenced and Corrupt Organizations (RICO) law and breach of contract claims against the scammers. The accused are said to have launched at least 87 fake apps, deceiving users about the legitimacy of their investments.

In a statement, Halimah DeLaine Prado, Google’s general counsel, emphasized the importance of combating bad actors, stating, “This is a unique opportunity for us to use our resources to actually combat bad actors.”

The lawsuit comes in the wake of over $1 billion in crypto fraud losses in the U.S. in 2023. Google’s legal action not only aims to protect users but also intends to discourage future fraudulent activities. The defendants, Yunfeng Sun and Hongnam Cheung, allegedly targeted victims through various means, including text messages via Google Voice, promotional videos on YouTube, and affiliate marketing since 2019.

Apps like TionRT, posing as a legitimate crypto exchange, were created to gain users’ trust by allowing small withdrawals at first. However, users later found themselves unable to access their funds, often faced with additional payment requests or minimum withdrawal balances.

Despite Google’s efforts to remove these fraudulent apps, the scammers persisted in creating new ones to evade detection. Google states that it has suffered damages exceeding $75,000 due to investigations and security measures taken against these breaches. The tech giant is seeking a permanent injunction to prevent the accused and their associates from using Google services or creating new accounts.

For more information, visit Global Crypto News for the latest updates on the cryptocurrency industry.

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