Michaela Alvez
New York Attorney General Letitia James has filed a lawsuit against crypto scam perpetrators, aiming to recover more than $2 million in cryptocurrency stolen from individuals targeted by a complex remote job scheme.
The scam operated by luring victims with text messages offering flexible, high-paying job opportunities. Once engaged, victims were directed to set up cryptocurrency accounts, deposit funds, and complete product reviews on fake websites designed to look like legitimate businesses.
In the lawsuit, James asserts that the scammers convinced victims their deposits were only necessary to “legitimize” data, with no actual purchases involved. In return, they were promised full refunds and commissions. However, victims received neither refunds nor commissions, ultimately losing their funds.
With the help of the U.S. Secret Service, the stolen cryptocurrency have been frozen. James has warned the public to stay alert and cautious of unsolicited job offers, especially those sent via text messages from unknown numbers.
“Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” James said in a January 9 press release.
WFH Crypto Scam Swipes $2.2M From New Yorkers
In mid-2024, the Federal Bureau of Investigation (FBI) stressed a growing trend of work-from-home scams. These schemes often target victims by requesting cryptocurrency payments under the guise of unlocking additional job opportunities, ultimately diverting the funds to the scammers.
In the latest scheme, the fraudsters instructed victims to purchase Tether (USDT) and USD Coin (USDC) stablecoins. Victims were directed to make these transactions through legitimate, licensed cryptocurrency platforms, including Coinbase, Gemini, and Crypto.com.
The victims were subsequently deceived into transferring their cryptocurrency to unregulated digital wallets, which were controlled by the scammers.
By moving funds off centralized, regulated platforms, the scammers bypassed “know-your-customer” protocols, enabling them to obscure the origin and flow of the cryptocurrency. Off-chain conversions from USDC to USDT further concealed the transactions, making it difficult to trace the stolen assets.
In some cases, the scammers exploited platform limits by convincing victims to transfer U.S. dollars directly through money transfer services like Wise. The fraudsters falsely promised to purchase cryptocurrency on behalf of the victims, furthering the scheme and facilitating the theft of funds.
When victims attempted to withdraw their funds, the scammers imposed fabricated charges, including a “credit score improvement fee,” a “blockchain verification fee,” or an “escrow fee.”
These additional demands coerced victims into depositing even more cryptocurrency, yet no withdrawals were ever permitted, leaving the victims completely defrauded.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
