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NEW YORK: Scammers stole millions of dollars in cryptocurrency from people seeking remote work opportunities as part of an elaborate scheme, according to New York’s attorney general.
Attorney General Letitia James said Thursday that she’s filed a lawsuit in order to recover more than $2 million that she said was stolen from New Yorkers and others around the country.
James said the unknown network of scammers used unsolicited text messages to target people looking for remote work.
They told victims that the job involved reviewing products online in order to help generate “market data,” James’ office said. But in order to begin earning money, victims were told they had to open cryptocurrency accounts and had to maintain a balance equal to, or greater than, the price of the products they were reviewing.
The victims were assured they would get their investments back plus commission, but the funds simply went into the scammers’ crypto wallets, James’ office said. The product reviews were also conducted on a website set up as part of the scheme.
The suit cites seven victims, identified by pseudonyms, residing in New York, Virginia and Florida. One New York victim lost over $100,000, according to the suit. A Florida woman lost over $300,000.
“Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” she said in a statement. “Scammers sent text messages to New Yorkers promising them good-paying, flexible jobs only to trick them into purchasing cryptocurrency and then stealing it from them.”
James’ suit seeks to return the stolen funds.
Queens District Attorney Melinda Katz said her office’s cryptocurrency unit traced over $2 million in stolen crypto and identified the digital wallets where the coins were being held. Then, working with James’ office, they were able to have the currency frozen until they could be returned to victims.
“Work scams that prey on those seeking legitimate employment not only rob victims of their hard-earned money but also shatter their trust in the job market,” she added.