The fraudulent apps ran by the two Chinese developers “affected consumers across the globe” and resulted in “substantial financial losses” to Google users, the US tech giant said in its lawsuit.
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‘It’s scary’: Asian cryptocurrency scams bilk tens of thousands of ‘brainwashed’ victims
‘It’s scary’: Asian cryptocurrency scams bilk tens of thousands of ‘brainwashed’ victims
While Google had made efforts to remove those apps, the company said the two defendants managed to create more apps using “new aliases and infrastructure”, and by making “repeated material misrepresentations” regarding their identity and activities.
Google’s lawsuit shows the continued rise of pig-butchering scams around the world, which have duped tens of thousands of victims into making fraudulent investments online.
After victims make several cryptocurrency investments through fake sites, they discover that any request to make a withdrawal or cash out their investment is denied, according to a recent FBI warning in the US. The scammers even request additional investments, taxes or fees for the victims to obtain their money. Once the victims’ funds are exhausted, the scammer cuts off contact and vanishes with the money.
How Chinese forced to run online scams in Cambodia can pay with their lives
How Chinese forced to run online scams in Cambodia can pay with their lives
Google claimed in its lawsuit that the two Chinese app developers would send “wayward” text messages to victims as a way to “strike up a conversation”. After exchanging initial messages with the victims, the defendants “shifted the conversations to other messaging platforms such as WhatsApp”.
They would also publish videos online that promoted the fraudulent investment apps, according to the lawsuit. After victims deposited money into the apps that purported to offer high returns, these bogus platforms would prevent them from withdrawing money through various schemes.
Sun and Cheung’s apps, including one named TionRT that passed itself off as a cryptocurrency exchange, caused financial losses that ranged from US$100 to tens of thousands of dollars per individual victim, Google said.
Google also alleged that it “suffered economic damages” of more than US$75,000 in investigating their scheme, according to the lawsuit.
Another 807 suspects were arrested in Myanmar last month, including 455 Burmese nationals and 354 Chinese nationals, the state-run Xinhua news agency reported earlier this month.