Remote Job Fraud Case: New York Attorney General Letitia James has taken legal action to recover $2.2 million in cryptocurrency allegedly stolen through a remote job scam. This lawsuit aims to return the funds to victims in New York and across the country.
Investigation Unveils the Fraudulent Scheme
The Office of the Attorney General (OAG), collaborating with the U.S. Secret Service and the Queens County District Attorney’s Office, uncovered that scammers had been sending fraudulent text messages. These messages offered fake online jobs, luring victims into purchasing stablecoins and depositing them into the scammers’ digital wallets. The scammers misled the victims by promising compensation for opening cryptocurrency accounts and reviewing products on counterfeit websites.
Legal Efforts to Recover Funds
In her lawsuit, Attorney General James seeks to recover the frozen cryptocurrency for the victims. She also intends to impose penalties, restitution, and damages on the scammers. Furthermore, she aims to prevent these individuals from advertising or sending unsolicited text messages in New York permanently. Remote Job Fraud Case
How the Scam Operated
From January to June 2024, unknown individuals orchestrated the scam from undisclosed locations. The OAG’s complaint reveals that victims were told their reviews would generate market data to increase sales. However, they had to maintain cryptocurrency balances equivalent to the product prices they reviewed. The victims were falsely assured that they would retrieve their deposits along with a commission. They were also instructed to link their crypto wallets to their accounts for compensation.
Misleading Instructions and False Promises
Those who responded to the job offers were soon contacted via WhatsApp by individuals pretending to be “trainers.” These trainers provided further details about the supposed job opportunities. Most victims, lacking cryptocurrency experience, were directed to purchase stablecoins like USDC and USDT on platforms such as Coinbase, Gemini, and Crypto.com. Subsequently, they were deceived into sending their cryptocurrency to untraceable wallets.
Obstacles Faced by Victims
When victims attempted to withdraw their funds, the scammers imposed additional fees, such as “credit score improvement” and “blockchain verification” charges, without ever allowing any withdrawals. However, with the cooperation of Tether Limited and the Queens County District Attorney’s Office, the stolen cryptocurrency was frozen, enabling potential recovery through court approval.
Novel Legal Notice via NFT
In a groundbreaking move, Attorney General James plans to serve notice of litigation by depositing a nonfungible token (NFT) into the wallets used in the scam. This NFT will contain a link to an OAG website with all legal documents, ensuring the scammers are formally notified.
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For the original report, visit the Queens County District Attorney’s Office.