Google sues crypto scammers from the Play Store

Google sued Yunfeng Sun and Hongnam Chung, alleging that between 2014 and 2019 they created 87 fraudulent apps posing as cryptocurrency exchanges and cryptocurrency investment platforms.

Promising high returns, scammers caused financial losses to more than 100,000 users around the world. According to Google, the victims' losses ranged from $1,000 to $75,000. The company suffered damages in excess of $75,000.

The lawsuit states that the victims invested money in applications that simulated the rise and fall of balances in accordance with real fluctuations in cryptocurrency prices, but this was only an illusion.

In reality, Sun and Chung withdrew all deposits made and blocked the withdrawal of the victims' remaining funds. Google also found that scammers demanded additional funds for investments, taxes and various fees in exchange for access to accounts.

In addition, scammers ran marketing campaigns to promote their apps, built trust with victims on social media, and convinced them to download additional software. Sun and Chung even hired actors to pretend to be top rankers and spread the word that the apps were safe and had high returns.

Google filed claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) and breach of contract related to its services. This is the first time that a technology company has independently filed a lawsuit against crypto scammers.