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Lawsuits Filed by Google Against Chinese Crypto Scammers

Apr 6, 2024

Alphabet's Google subsidiary has filed lawsuits in federal court in New York against two individuals in mainland China for allegedly using Google Play to promote and spread fraudulent crypto apps. The apps, including TionRT exchange, attracted over 100,000 downloads from users who invested money but later faced issues with accessing their funds.

Google claims to be the first tech company taking legal action against scammers, aiming to create a legal precedent. The defendants are accused of providing false information to Google to upload their fraudulent apps, including misrepresentations regarding their identity and the nature of the applications.

The lawsuits involve allegations under the Racketeer Influenced and Corrupt Organizations (RICO) law and breach of contract against the group responsible for publishing at least 87 fraudulent crypto apps on Google Play. The named individuals, Yunfeng Sun and Hongnam Cheung, allegedly used various marketing tactics to attract victims to download the apps.

While the outcome of the lawsuits is uncertain, the lack of a mutual legal enforcement agreement between the U.S. and China may hinder the enforcement of any judgments in China, regardless of the lawsuit's success.

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