Google Sues Chinese Nationals for Promoting Fake Crypto Apps on Its App Marketplace

Alphabet's subsidiary, Google, has filed a lawsuit against two Chinese nationals for promoting fake cryptocurrency apps on the Google Play store.

The charges filed at a federal court in New York claim that users downloaded the fraudulent apps listed by the two individuals on Google's app marketplace more than 100,000 times. Those who downloaded the apps ended up depositing funds.

The apps, one of which is TionRT, duped users into thinking they would receive returns on their investments. These users could initially withdraw part of the deposited funds from the platforms, but the funds ended up being inaccessible.

Google Sues Crypto Scammers

According to Google, it was the first tech company to take legal action against scammers and hopes to set a legal precedent. The individuals mentioned in the lawsuit are Yunfeng Sun and Hongnam Cheung.

The lawsuit claims that the defendants made false representations when filing to have their apps listed in Google's official app marketplace. While they promoted their apps as legitimate, they ended up being fraudulent.

Google noted that some of the misrepresentations made by the defendants included their identity, location, and the type and nature of the application being uploaded."

The tech giant is bringing charges against the individuals under the Racketeer Influenced and Corrupt Organizations (RICO) law. It also claims that the individuals were in breach of contract after publishing more than 87 malicious crypto applications on the Google Play Store.

These individuals lured unsuspecting users to download the scam apps through Google Voice. They also made false promotions using YouTube videos and other marketing campaigns.

Google said:

When users tried to withdraw larger amounts of their earnings,' they were told to pay more money. When victims complained to the friend' or romantic partner' who had so helpfully guided them through the process, the friend' or romantic partner' would simply disappear.

The course of the lawsuit remains unclear due to the blurry juridical enforcement between China and the US. As such, Chinese authorities are not mandated to enforce the charges even if the individuals are found guilty.

Google's Relationship with Cryptocurrencies

Google has become increasingly accommodating to cryptocurrencies and blockchain technology. Last month, the tech giant integrated the Ethereum Name Service (ENS) data into search results using Ethereum data.

holy fucking shit google has integrated ENS into its search pic.twitter.com/xZt00EdJoq

- brantly.eth (@BrantlyMillegan) March 21, 2024

Once someone inputs an ENS address on the Google search bar, it displays results showing the contents of that address, including their wallet balance and the particulars of their last transaction.

Following the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States, Google allowed users to see results for queries related to such products by enabling products from Wall Street giants like BlackRock to appear on the search results.

The Google search engine also became popular with the Ethereum community during the 2022 Merge event. At the time, the tech giant launched a countdown to the Merge using animated pandas that moved in unison.

Last year, Google also announced revising its cryptocurrency advertising policy to feature Cryptocurrency Coin Trusts." The revised policy came as the crypto market eagerly awaited the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC). These products allow investors to trade shares in trusts holding digital assets.

These developments come amid the increased adoption of cryptocurrencies by institutions. The approval of spot Bitcoin ETFs offered by Fidelity and BlackRock has brought legitimacy to an industry once shrouded by skepticism.

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