Attorney General James halts cryptocurrency scam targeting job seekers

Attorney General Letitia James has filed a lawsuit to recover $2.2 million worth of stolen cryptocurrency from a sophisticated scam that preyed on vulnerable job seekers. The scammers used text messages to offer fake remote work opportunities, tricking victims into depositing stablecoins into fraudulent cryptocurrency accounts.

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The investigation, conducted by the Office of the Attorney General (OAG) with the U.S. Secret Service and the Queens County District Attorney’s Office, uncovered a scheme that promised victims compensation for reviewing products on fake websites mimicking legitimate brands. Instead, the scammers redirected the cryptocurrency to untraceable digital wallets.

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“Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” said Attorney General James. “My office has frozen millions in stolen cryptocurrency, and we will fight to return it to victims while holding these scammers accountable.”

Scammers exploited registered platforms like Coinbase and Crypto.com to lure victims into buying stablecoins such as USDC and USDT. They then instructed victims to transfer their funds to unhosted wallets, bypassing safeguards and making the stolen assets harder to trace. When victims tried to withdraw their money, the scammers demanded fake fees, further defrauding them.

In one case, a New York resident lost more than $100,000 after being promised a registration bonus and high commissions during a supposed training period. The victim was directed to set up a cryptocurrency wallet and transfer funds to conduct “product reviews,” which turned out to be a ruse.

The OAG froze the stolen cryptocurrency in cooperation with Tether Limited and secured a warrant to freeze additional assets. For the first time, the lawsuit will serve notice to scammers via a nonfungible token (NFT), embedding the litigation details in the scammers’ wallets.

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“This case underscores the importance of vigilance in the face of evolving scams,” said Patrick Freaney, Special Agent-in-Charge of the U.S. Secret Service in New York. “Our collaboration with the Attorney General’s Office has disrupted this harmful operation.”

Attorney General James encourages victims of similar scams to file complaints online with her office. The lawsuit seeks to recover funds, impose penalties, and permanently bar the scammers from targeting New Yorkers.

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