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New York Attorney General Takes Action Against $2.2 Million Crypto Job Scam

By ToTo BugelmanNewcomer0 rep· 1/12/2025

New York Attorney General Letitia James has filed a lawsuit to recover $2.2 million in cryptocurrency stolen from victims of a remote job scam. The scheme involved scammers posing as job recruiters, luring individuals into depositing funds into fraudulent cryptocurrency accounts under the guise of offering flexible, well-paying jobs.

 

Key Takeaways

  • Attorney General Letitia James has initiated legal action to recover $2.2 million in stolen cryptocurrency.

  • Victims were deceived into believing they were applying for legitimate remote jobs.

  • The scammers used text messages to lure victims into a complex scheme involving fake product reviews.

  • The lawsuit seeks to freeze the scammers' assets and return the funds to victims.

 

The Scam Unveiled

The investigation revealed that scammers sent unsolicited text messages to potential victims, promising lucrative remote job opportunities. Victims were instructed to open cryptocurrency accounts and maintain balances that matched the prices of products they were supposedly reviewing. They were assured that their investments would be reimbursed along with commissions for their work.

Victims were often told that they were not purchasing products but merely helping to generate market data. This false assurance led many to deposit significant amounts of cryptocurrency into the scammers' wallets.

 

La red de estafadores se comunicaba directamente con las víctimas a través de mensajes de texto. Fuente: Oficina del Fiscal General del Estado de Nueva York

 

Victims' Stories

The lawsuit highlights several heartbreaking accounts from victims:

  1. A New Yorker lost over $100,000 after being convinced to set up a cryptocurrency wallet and invest in fake product reviews.

  2. A Florida woman fell victim to the scam, depositing over $300,000 in just 20 days.

  3. A Queens teacher, referred to as "Mell," lost nearly $120,000, struggling to meet the scammers' demands for additional deposits to access his supposed earnings.

  4. Another victim, identified as "June," lost her life savings of $6,250, pleading with the scammers for help after being unable to withdraw her funds.

 

Legal Action and Recovery Efforts

Attorney General James is not only seeking to recover the stolen funds but also aims to impose penalties on the scammers and prevent them from operating in New York. The lawsuit, filed in Queens Supreme Court, seeks to freeze the cryptocurrency accounts identified during the investigation, which were traced back to the scammers.

In a novel approach, the Attorney General's office plans to serve notice to the scammers by depositing non-fungible tokens (NFTs) into their digital wallets, linking them to the legal proceedings.

 

A Call for Caution

James has urged New Yorkers to be vigilant against unsolicited job offers via text messages and to report any suspicious activity to her office. The Attorney General emphasized the importance of protecting individuals seeking legitimate employment opportunities from falling prey to such scams.

As the investigation continues, the collaboration between the Attorney General's office, the U.S. Secret Service, and the Queens District Attorney's office aims to bring justice to the victims and disrupt the operations of these scammers. The case serves as a stark reminder of the evolving nature of cybercrime and the need for increased awareness among job seekers.

 

Sources

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New York Attorney General Takes Action Against $2.2 Million Crypto Job Scam | BlockzHub