New York Attorney General Letitia James has filed a lawsuit to recover $2.2 million in cryptocurrency stolen through a scam targeting job seekers.
New York Attorney General Letitia James has filed a lawsuit to recover $2.2 million in cryptocurrency stolen through a scam targeting job seekers. The scam involved fraudulent promises of remote work opportunities. Victims were contacted via text messages and instructed to create cryptocurrency accounts. They were then directed to deposit funds under the guise of reviewing products on websites mimicking legitimate brands.
Victims were told these deposits were necessary to “legitimize” the process, with assurances they would not actually be purchasing the products. The scammers promised reimbursement plus commissions, but these payments never materialized. Instead, the cryptocurrency deposited by victims was funneled into wallets controlled by the scammers. Victims were repeatedly asked to maintain cryptocurrency balances to access more tasks, further increasing their losses.
James' office, working with the U.S. Secret Service, has frozen nearly $2.2 million worth of stolen cryptocurrency in the form of stablecoins like USDC and Tether. The lawsuit highlights the plight of victims, including a hotel receptionist and a teacher from New York who each lost over $100,000, and a Florida tech worker defrauded of more than $300,000.
An innovative legal strategy will be used to notify the scammers. The Attorney General’s office plans to serve the lawsuit via NFTs airdropped to the cryptocurrency wallets used by the fraudsters. These NFTs will include links to legal documents hosted on a government website, ensuring the scammers receive notice despite their anonymity. This approach is a first for U.S. regulators in addressing crypto-related fraud.
The lawsuit describes tactics resembling "pig-butchering" scams, in which scammers build trust with victims to extract as much money as possible. The FBI has warned about similar schemes targeting job seekers, where victims are manipulated into making cryptocurrency payments to secure employment.
Between January and June 2024, the scammers intensified their operations using WhatsApp to pose as recruiters from legitimate companies. Victims were convinced they could earn cryptocurrency by reviewing products, but any earnings were fabricated. When victims attempted to withdraw funds, they were told to deposit even more cryptocurrency to resolve alleged account issues, further exacerbating their losses.
The lawsuit seeks to recover the stolen funds, impose penalties, and bar the scammers from engaging in cryptocurrency-related activities in New York. Attorney General James has emphasized the exploitative nature of preying on individuals seeking remote work opportunities to support their families. She urged the public to remain vigilant against unsolicited messages offering jobs or investment opportunities.
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