Alphabet’s subsidiary, Google, has initiated legal proceedings against two Chinese nationals residing in mainland China. The lawsuit, filed in federal court in New York, accuses them of leveraging Google Play to promote and distribute fraudulent crypto applications. The apps in question, notably the TionRT exchange, reportedly amassed over 100,000 downloads. Victims deposited funds into these apps, initially experiencing returns and small withdrawals. However, they later found themselves unable to access their balances.

Google’s Stance

Google asserts itself as the first tech company to confront such scams head-on, aiming to establish a legal precedent. The lawsuit contends that the defendants misled Google about their identity, location, and the true nature of the applications being uploaded to Google Play.

The legal action employs the Racketeer Influenced and Corrupt Organizations (RICO) law, alongside claims of breach of contract against the group responsible for publishing at least 87 crypto scam apps on Google Play.

The individuals named in the lawsuit are Yunfeng Sun, also known as Alphonse Sun, and Hongnam Cheung, alias Zhang Hongnim or Stanford Fischer. Google accuses them of enticing victims through various means, including text message campaigns on Google Voice, YouTube videos, and affiliate marketing schemes.

Challenges Ahead for Google

Despite Google’s legal pursuit, significant challenges loom. Presently, there exists no reciprocal juridical enforcement agreement between the United States and China. Consequently, even if the lawsuit succeeds, Chinese authorities are under no obligation to enforce it within their jurisdiction.

Uncertain Outcome

The outcome of Google’s legal endeavor remains uncertain. While the tech giant hopes to secure sanctions against the alleged scammers, the lack of legal cooperation between the U.S. and China complicates the enforcement process.

Google’s decision to confront crypto app scams marks a significant step in combating fraudulent activities within the digital sphere. However, the success of its legal action hinges on navigating complex legal landscapes and overcoming jurisdictional hurdles. Time will tell whether Google can prevail in its pursuit of justice against these alleged scammers.