Remote Work Cryptocurrency Scam: $2 Million Stolen from New Yorkers

• Remote work scams involved USDT and USDC in New York.
• Scheme used text messages and fake websites to steal from victims.
• Investigation froze assets and used NFTs as legal notice.

New York Attorney General Letitia James has filed a lawsuit against perpetrators of a cryptocurrency scam, seeking to recover doing more of $2 million stolen from victims seeking remote work opportunities.

The scam was orchestrated through text messages sent to New York residents offering flexible, above-average-paying jobs. The scammers tricked victims into creating accounts on legitimate cryptocurrency platforms such as Coinbase and Crypto.com and depositing stablecoins such as Tether (USDT) and USD Coin (USDC).

According to the complaint, victims were led to believe that the deposits were necessary to validate product reviews on fake websites that imitated major brands. In exchange, they were promised a full refund and compensation for services rendered. However, the funds were transferred to digital wallets controlled by the scammers, without the promised refund.

The lawsuit highlights the sophistication of the scheme, which included justifications for additional deposits, such as verification fees or credit enhancements. One example cited in the case describes a victim who deposited more than $100.000 using credit cards and loans from family members.

With the collaboration of the United States Secret Service and the Queens Police Department, the investigation was able to trace the transactions and freeze some of the stolen assets. An innovative aspect of the lawsuit is the use of non-fungible tokens (NFTs) as a form of official notification to the scammers, sent directly to the wallets involved in the scheme.

Tether, which is responsible for issuing USDT, also played a crucial role by freezing the funds involved. In a statement, the company’s CEO, Paolo Ardoino, highlighted the T3 initiative’s commitment to working with global authorities to identify criminal activities involving cryptocurrencies.

The legitimate and widely used stablecoins USDT and USDC continue to be the preferred assets for scams due to their stability. However, experts warn of the importance of verifying the authenticity of job offers and avoiding any request for an initial payment in crypto assets.