Google Sues Developers Over Fraudulent Crypto Apps on Play Store

Google has initiated legal action against two developers allegedly responsible for introducing 87 fraudulent cryptocurrency apps into its Play Store. These apps targeted over 100,000 individuals, including 8,700 in the US, by luring them with the promise of cryptocurrency investments but demanding exorbitant fees for withdrawals. Google alleges that the developers employed tactics such as "pig butchering" and used the platform's reputation to legitimize their fraudulent apps. The complaint cites violations of the RICO law and Google's platform policies.

Google Files Lawsuit Against Developers for Inserting Fraudulent Crypto Apps into Google Play Store

New York, February 2, 2024 - Google LLC has filed a lawsuit in the Southern District of New York against two developers, Yunfeng Sun and Hongnam Cheung, for allegedly inserting 87 fraudulent crypto apps into the Google Play store.

According to the complaint, the developers engaged in a four-year scheme to deceive users by creating scam apps that purported to facilitate investments in cryptocurrencies. The apps lured victims into downloading them under the pretense of providing legitimate investment opportunities. However, when users attempted to withdraw their funds, they were met with demands for exorbitant fees that ranged from 10% to 30% of the withdrawal amount.

"The defendants and their agents designed fraudulent apps made available on Google Play to appear legitimate," Google alleged in the court document. "Their user interfaces sought to convince victims that they were maintaining balances on the app and earning 'returns' on their investments. But these claims were false. The apps were not actual trading platforms; they only existed to siphon off users' money, with which the scammers would then flee."

Google contends that the fraudulent crypto apps affected at least 100,000 individuals, including 8,700 in the United States. The developers allegedly used a combination of deceptive marketing practices and technical sophistication to conceal their malicious intent and evade detection by Google's security measures.

"Despite Google's efforts to remove fraudulent apps from its store, the defendants were able to hide their identities and their network infrastructure to insert new apps into the Google Play Store," the lawsuit states.

Google further alleges that the developers violated the Racketeer Influenced and Corrupt Organizations (RICO) Act, engaged in online fraud, and breached various policies governing the use of Google platforms. Additionally, the complaint accuses the defendants of employing the "pig butchering" scam technique, a sophisticated form of romance fraud where scammers gain the trust of victims through online relationships before persuading them to invest in fraudulent financial schemes.

"Google was not the only entity that served as a 'legitimate front' for these scams," the lawsuit continues. "In November 2023, the US Department of Justice (DOJ) uncovered a separate cryptocurrency-related romance scam that involved targeting investors through carefully crafted websites that promised substantial returns."

"Unsuspecting victims were persuaded to send cryptocurrencies to scammers, who then stole them," the complaint explains. "The DOJ seized nearly $9 million in crypto with the assistance of Tether, a crypto company that collaborated to trace the funds sent to the scammers in USDT."

Google seeks unspecified damages, injunctive relief, and other remedies to hold the developers accountable for their fraudulent conduct and to deter similar schemes in the future.

"Google takes the security and integrity of its platforms seriously," a company spokesperson said in a statement. "We will continue to invest in measures to protect our users from fraud and to collaborate with law enforcement to combat these types of scams."