NY Attorney General Pursues Legal Action to Reclaim $2M in Crypto Scam Targeting Job Seekers

New York Attorney General Letitia James has taken legal steps to recover over $2 million in cryptocurrency stolen through an elaborate scam targeting individuals seeking remote job opportunities.

The scheme involved scammers sending text messages promising flexible, high-paying jobs.

Victims were instructed to create cryptocurrency accounts, deposit funds, and participate in product reviews on fraudulent websites designed to mimic legitimate businesses.

Scammers Deceived Victims with Promises of ‘Legitimizing’ Data

According to James, the perpetrators assured victims that their deposited funds were merely for “legitimizing” data and that they would not be purchasing any products.

In exchange, participants were promised full refunds and commissions. However, the victims never received any compensation, losing their money instead.

“Scammers sent messages offering good-paying, flexible jobs, only to manipulate victims into buying cryptocurrency and stealing it from them,” James stated on January 9.

With the help of the U.S. Secret Service, authorities have frozen the stolen cryptocurrency.

James urged the public to remain vigilant about unsolicited job offers, especially those received via text messages from unknown senders.

“Preying on New Yorkers trying to support their families with remote work opportunities is cruel and unacceptable,” James added.

CRYPTO SCAMMERS STEAL $2.2M IN REMOTE JOB HUSTLE

Scammers baited people with "remote job" gigs, tricking them into loading up crypto wallets for fake product reviews.

Victims were told they’d earn commissions – but instead, wallets got drained.

Over $2.2M in stolen funds are… pic.twitter.com/v3m3wyz1vn

— Mario Nawfal’s Roundtable (@RoundtableSpace) January 12, 2025

This incident follows a warning issued by the Federal Bureau of Investigation (FBI) in mid-2024 about the rising prevalence of work-from-home scams.

The FBI reported that scammers often contact potential victims through unsolicited calls or messages, offering seemingly simple tasks like restaurant reviews or service optimization.

Victims are typically asked to make cryptocurrency payments to access more work, with the money ending up in the scammers’ hands.

“You are directed to make cryptocurrency payments to your employer as part of the job,” the FBI cautioned.

California Resident Sues 3 Asia-Based Banks for Failing to Prevent Crypto Scam

Last week, a California resident filed a lawsuit against three Asia-based banks, accusing them of negligence in preventing a cryptocurrency scam that led to a loss of nearly $1 million.

The legal action claimed that the banks failed to perform essential due diligence, allowing fraudsters to deceive the victim over several months.

The plaintiff, Ken Liem, alleges that he became a target of a “pig butchering” scam after being contacted on LinkedIn in June 2023 by individuals posing as representatives of a lucrative cryptocurrency investment opportunity.

As reported, the crypto industry witnessed losses totaling $1.49 billion in 2024 due to hacks and fraud, marking a 17% decrease from 2023.

According to a report by blockchain security platform Immunefi, hacks were overwhelmingly the primary cause, accounting for $1.47 billion or 98.1% of the total losses across 192 incidents.

Fraud, including rug pulls and scams, represented just 1.9% of the losses at $28 million, though this category saw a 72% increase year-on-year.

The decline in total crypto losses reflects improved security measures, as the number of successful attacks also fell by 27.5%, from 320 in 2023 to 232 in 2024.