In a move to protect its users and maintain the integrity of its platforms, Google has taken legal action against two Chinese developers accused of perpetrating a widespread crypto investment fraud scheme on the company’s Play Store. The tech giant filed a lawsuit in the Southern District of New York, alleging that Yunfeng Sun and Hongnam Cheung uploaded nearly 90 fraudulent crypto investment applications to the Play Store, ultimately defrauding around 100,000 unsuspecting users.
According to the complaint, Sun and Cheung employed various deceptive tactics to lure victims into downloading their fake crypto-based investment apps. One of the primary methods involved initiating conversations through wrong number messages, subsequently building friendly or romantic relationships, and convincing the victims to download the fraudulent apps, falsely presented as legitimate investment platforms.
The defendants also allegedly used online videos and affiliate marketing programs to promote the apps as genuine, promising illusory high returns to entice investors. Once users invested their funds, the apps would initially allow small withdrawals to maintain the illusion of legitimacy. However, further attempts to withdraw larger amounts were met with roadblocks, as the defendants would impose exorbitant fees or require victims to maintain unreasonable minimum balances.
Google’s complaint states that the defendants’ actions were part of a broader fraud scheme that has been ongoing since 2019, with approximately 87 apps uploaded to the Play Store under various aliases and infrastructure to circumvent the company’s security measures. While Google removed some of the fraudulent apps, the defendants persistently uploaded new ones, making repeated misrepresentations to gain access to the Play Store.
The tech company alleges that the defendants’ actions not only defrauded individual users, with financial losses ranging from hundreds to tens of thousands of dollars per victim, but also damaged Google’s reputation and user confidence in its services and platforms. As a result, Google claims to have suffered financial damage exceeding $75,000 in investigating the breach and remediating the damage caused by the defendants.
In its filing, Google accuses Sun, Cheung, and their associates of committing wire fraud, breaching various contracts, and violating the Racketeer Influenced and Corrupt Organizations (RICO) Act. The company is seeking a permanent injunction to prevent the defendants from accessing Google services, creating or maintaining any Google accounts, or using the company’s products to promote any website, app, or product.
