CNBC reported that Google has initiated legal proceedings against a group it alleges defrauded over 100,000 individuals worldwide by distributing fake cryptocurrency apps via its Google Play store.

Filed in the Southern District of New York on April 4, the lawsuit underscores Google's determination to combat crypto scams and establish a legal precedent for user safeguarding.

The defendants, identified as Yunfeng Sun (Alphonse Sun) and Hongnam Cheung (Zhang Hongnim or Stanford Fischer), are accused of orchestrating a scheme involving at least 87 counterfeit investment and crypto exchange apps on Google Play. Google asserts that these individuals provided false information about themselves and their apps.

Halimah DeLaine Prado, Google's general counsel, emphasized the lawsuit's importance in addressing crypto fraud, which has inflicted significant losses in the US. Google aims to utilize its resources to protect users and deter fraudulent activities.

The legal action is based on civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act and breach of contract. The lawsuit details various methods employed by the defendants to attract users, such as text messaging campaigns and affiliate marketing.

Despite the deceptive appearance of legitimacy, users reportedly faced difficulties withdrawing funds from the apps. Some were coerced into paying additional fees to access their purported earnings.

Google has responded by bolstering its cybersecurity measures, collaborating with law enforcement, and forming a dedicated team to combat fraud. The company claims damages exceeding $75,000 due to investigative and safety enhancement costs. Through the lawsuit, Google seeks damages and a permanent injunction against the defendants and their affiliates from using Google services.

This legal action is part of Google's broader strategy to safeguard users and maintain platform integrity amidst growing online scams and cybersecurity threats.