Scammers Steal $2.2M in Crypto from New Yorkers in Job Scam
New York Attorney General Letitia James announced Thursday that scammers have defrauded New Yorkers of $2.2 million in cryptocurrency through a job scam targeting remote workers. The scheme involved sending text messages offering job opportunities and persuading victims to deposit funds into cryptocurrency accounts. Victims were instructed to purchase stablecoins such as Tether (USDT) and USD Coin (USDC) on licensed platforms, including Coinbase, Gemini, and Crypto.com. However, they were later tricked into transferring the assets to un-hosted wallets controlled by the scammers. Attorney General James has filed a lawsuit seeking to recover the stolen funds, which are currently frozen, and to impose penalties and restitution on the perpetrators. “Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” James said. Investigative Collaboration Uncovers Scam Tactics The Office of the Attorney General worked alongside the U.S. Secret Service and the Queens County District Attorney’s Office to investigate the case. The scam, operating across multiple jurisdictions, targeted individuals seeking remote job opportunities, exploiting their economic vulnerabilities. Victims were lured into opening cryptocurrency accounts and depositing funds under the guise of writing product reviews. Scammers falsely claimed the reviews would generate “market data” to help boost sales, assuring victims they were not actually purchasing the products but legitimizing data collection efforts. Overall, authorities are continuing their efforts to recover the stolen assets and hold the scammers accountable. Residents are encouraged to report suspicious activity to the Attorney General’s office to aid in the investigation and prevention of future fraud. The case highlights the importance of exercising caution when engaging with unsolicited job offers, particularly those involving cryptocurrency transactions.
SEC Charges Brothers in $60M Crypto Ponzi Scheme
The Adam brothers allegedly diverted investor funds into personal projects, mostly using them to fund their luxury lifestyle.
Former Chinese Tycoon Sentenced to Six Years for $5M Crypto Fraud in Singapore
Yang’s entire business turned out to be nothing more than a front for a scam.
Google Lawsuit Says Platform Took 3 Months to Remove Crypto Scam App
Google’s reputation continues to hang in the balance with the rising cases of crypto scam apps on its app store.
Hackers use Metallica’s Account to Promote Shady Crypto Token METAL
The incident has once again shown the need for crypto enthusiasts to always exercise patience and conduct thorough research before investing in any cryptocurrency.
Meta Platforms Suffers Blow in Crypto Scam Ad Lawsuit: Billionaire Can Pursue Claims
The judge ruled that Meta has failed to “prove beyond reasonable doubt” that Section 230 applied in this particular case.
Former Investment Banker Gets 41-Month Prison Term for Crypto-Related Crime
By the account of the Department of Justice (DoJ), Russell ran the fraudulent R3 Crypto Fund for nearly two years.
Pump Fun Hacker Arrested in London, Shares Shocking Revelations About the Platform
Dunn’s claims remain largely unverified, yet they highlight the complexities that surround cryptocurrency exploits.
Feds Crack $73 Million Crypto Heist, Nab Two Masterminds
United States authorities have arrested two individuals in connection with a crypto heist that saw over $73 million siphoned. The duo, of Chinese extract, allegedly masterminded the scheme and funnelled the stolen funds through financial institutions in the U.S. before finally converting into Tether USDT. According to a recent announcement by the Department of Justice (DoJ), one Daren Li (41 years) and 3-years younger Yicheng Zhang are now in police custody and have been charged. Meanwhile, an indictment had already been submitted at a California court on Thursday, which details the roles that the duo played in the scheme. Per the announcement, Li and Zhang ran an international criminal ring that laundered millions from ‘pig butchering’ crypto scams. For clarity, pig butchering is a kind of crypto scam where fraudsters take their time to gain the trust of potential victims. After this, they then convince them to invest huge sums before making off with the same. $73 Million Crypto Heist Masterminds Arrested Prosecutors claim that the defendants had conspired with other ring members to open U.S. bank accounts in the name of shell companies. That was before convincing anyone to invest. The scammers then waited for the right time to ask their victims to transfer millions of dollars into these U.S. bank accounts from where they laundered the ill-gotten funds. The DoJ also claims that the bad actors dispersed the stolen funds to various domestic and international bank accounts. A statement from the Justice Department reads partly: “The fraud scheme involved more than $73 million laundered through U.S. financial institutions to bank accounts in the Bahamas and converted to the virtual asset USDT, or Tether.” Li and Zhang are faced with charges of conspiring to launder money and six counts of international money laundering. If found guilty, they could be seeing a maximum sentence of 20 years imprisonment for each of those charges. This means that they could each be looking at prison terms of around 140 years behind bars. Growing Menace of Pig Butchering Scams Pig butchering scams are getting increasingly popular as online criminals have recently turned to it for their lucrative tendencies. In November 2023, a similar scheme occurred that took advantage of over 70 United States citizens. The U.S. Justice Department did seize $9 million from the scheme at the time. However, the alarming rate at which similar cases are springing up is now a cause of concern for lawmakers and regulators. It might also be noteworthy that regulators and global authorities have been working tirelessly to protect investors and sanitize the crypto space. While regulators are proposing new rules that meet up with the reality of today’s digital asset space, authorities are also effecting arrests, even as the judiciary continues to pass sentences to those found on the wrong side of the law. Hopefully, these concerted efforts will serve as a warning to other bad actors that illicit acts will not be tolerated in the crypro space.
Crypto Con Artist Pleads Guilty to Creating Fake Coinbase Website, Awaits Sentencing
Court documents also reveal that Tomar and his co-conspirators enjoyed the business until they made a mistake.
