Google parent company Alphabet (GOOG / GOOGL) is suing a group of crypto scammers, claiming they defrauded more than 100,000 people by uploading fake cryptocurrency exchange apps onto its Google Play store.
Alphabet says it’s the first technology company to act against crypto scammers and is doing so as a way to set a legal precedent and establish protections for consumers.
The company has filed suit against the crypto scammers under the U.S. “Racketeer Influenced and Corrupt Organizations” (RICO) law that is normally used to target organized crime groups.
Alphabet alleges that the scammers created and published at least 87 fraudulent cryptocurrency apps on its Play store to mislead users and steal their money.
The lawsuit targets alleged scammers Yunfeng Sun, also known as Alphonse Sun, and Hongnam Cheung, also known as Zhang Hongnim or Stanford Fischer. Alphabet says they have conducted various crypto schemes since 2019.
The two allegedly lured victims to download their crypto apps from Google Play using a combination of text messages, YouTube videos, and affiliate marketing campaigns.
Alphabet also alleges that Sun and Cheung designed the crypto apps to appear legitimate, however users couldn’t withdraw their money.
One of the apps mentioned in the lawsuit is “TionRT,” which claimed to be a crypto exchange. Google said the app was uploaded to Play in 2022 by Sun and quickly stole people’s money.
When victims complained that they were unable to withdraw their money, they wouldn’t get responses from the scammers, said Alphabet.
Alphabet adds that each time it would take down a fake crypto app, the scammers would create new ones and upload them to the Google Play store.
In the lawsuit, Alphabet claims that it suffered damages of more than $75,000 U.S. by incurring expenses to investigate the fake crypto apps and try to protect the safety of its customers.
The stock of Alphabet has risen 48% in the last 12 months to trade at $154.92 U.S. per share.
