A $2.2 million cryptocurrency scam targeting job seekers was halted as the NY Attorney General froze funds, uncovering fake fees and untraceable transfers.
AG James’ Bold Move Freezes $2.2M Crypto Loot From Fake Job Scammers
The Office of New York Attorney General Letitia James announced last week that James has filed a lawsuit to recover $2.2 million in cryptocurrency stolen through a sophisticated text message scam targeting individuals searching for remote work opportunities. The scammers sent unsolicited messages offering jobs with flexible hours and high pay, requiring victims to purchase cryptocurrency to participate. The announcement states:
AG James freezes $2.2 million worth of cryptocurrency, files lawsuit to recover money for defrauded New Yorkers.
In addition to recovering funds, the lawsuit seeks penalties, restitution, and damages, as well as a permanent ban on the scammers’ fraudulent activities.
The scam began with fake job offers claiming victims would earn commissions by reviewing products to generate market data. Victims were directed to open accounts on legitimate cryptocurrency platforms, such as Coinbase and Crypto.com, and purchase stablecoins like USDC and USDT. They were told the funds were needed to “legitimize” the data they were generating and assured their deposits would be refunded along with commissions.
Once victims transferred the cryptocurrency to unhosted wallets controlled by the scammers, the funds became virtually untraceable. The scammers used fake websites mimicking legitimate companies to make the process appear credible. When victims attempted to withdraw their funds, the scammers demanded additional fake fees, such as “credit score improvement” or “blockchain verification” fees, leading to further losses. In one case, a New York victim lost over $100,000.
An investigation led by the Attorney General’s Office, in collaboration with the U.S. Secret Service and the Queens County District Attorney’s Office, traced the stolen funds. “My Cryptocurrency Unit was able to identify and trace over $2 million in stolen crypto and identify the digital wallets where these coins were being held,” said Queens District Attorney Melinda Katz. The announcement adds that during the course of its investigation:
OAG secured Tether Limited’s voluntary agreement and cooperation to freeze the stolen USDT, and the Queens County District Attorney’s Office secured a search warrant to freeze USDC stolen in the scam. Because the cryptocurrency has been frozen, it is available to be recovered and returned to the scammers’ victims under court approval.
Source: Bitcoin
