New York Pursues £1.6 Million in Cryptocurrency Stolen in Job Fraud

The Attorney General of New York, Letitia James, has filed a lawsuit to reclaim £1.6 million ($2 million) in cryptocurrency lost to a sophisticated remote work scam. The scheme, which operated from January 2023 to June 2024, preyed on individuals seeking flexible online work.

 

The scammers, posing as legitimate employers, sent text messages offering well-paid remote roles. Victims were directed to WhatsApp, where they were convinced to open cryptocurrency accounts and deposit funds. The fraudsters claimed these deposits were needed to validate product reviews on fake websites imitating recognised brands.

 

Initial deposits were presented as refundable, but victims were repeatedly asked for larger sums under false pretences, such as account upgrades or covering product costs. One victim borrowed over £9,000 from friends and family, believing they had accrued significant earnings, only to be told more deposits were required to withdraw their funds.

 

The investigation, conducted with the US Secret Service and Queens County District Attorney’s Office, revealed the use of popular cryptocurrency platforms like Coinbase and Crypto.com. Stablecoin issuers Tether and Circle assisted authorities by freezing the stolen funds.

 

“These scammers exploited people seeking honest work, deceiving them into handing over their savings. It’s cruel and unacceptable,” Attorney General James said.

 

The lawsuit seeks to recover the stolen funds, secure restitution for victims, and impose penalties on the perpetrators. The scammers’ location remains unknown, but authorities are determined to hold them accountable.

 

The case highlights the growing danger of cryptocurrency-related fraud and serves as a stark reminder to remain vigilant when approached with unsolicited job offers. Anyone who suspects fraudulent activity is urged to report it immediately to the relevant authorities.