Key Insights
- New York Attorney General, Letitia James recently announced the seizure of $2.2 million in crypto, stolen from job seekers in the US.
- James’ office collaborated with several law enforcement agencies and Tether itself, showing the scale of these scams.
- The scammers typically sent unsolicited text messages to victims, offering them jobs and asking for crypto to “unlock tasks”.
- To stay safe, individuals must disregard unsolicited job offers, especially ones that ask for “processing fees” via crypto or other means.
The New York Attorney General, Letitia James recently swooped down against crypto fraud in the US this week.
James has reportedly authorized the freeze of a whopping $2.2 million in stolen digital assets from a certain scam ring aimed at job seekers.
She has also initiated legal action to recover these funds, marking a major victory in the fight against scams In the crypto space.
Here are all the important details to know.
Scams, Flexible Jobs and High Pay
The scams in question began with text messages sent to unsuspecting victims.
These individuals were offered attractive remote job opportunities with the full package—flexible hours and lucrative pay.
Said victims were then lured into the scheme, where they were asked to create accounts on popular exchanges like Coinbase and Crypto.com.
After this was done, the scammers would ask their victims to purchase stablecoins like USDT, to allegedly “legitimize” product reviews and market data.
However, the scams didn’t end there. The scammers promised the victims reimbursement, but would then vanish with the money.
To make the operation look credible, the scammers even used fake websites to mimic legitimate brands.
The victims who caught on and tried to withdraw their funds would be hit with demands for additional fees like “credit score improvement” or “blockchain verification” charges.
One New York resident even lost over $100,000 in an extreme example.
Legal Action to Recover Stolen Funds
Letitia James’ office collaborated with the U.S. Secret Service and the Queens County District Attorney’s Office to recover the stolen funds.
Per reports, Queens District Attorney Melinda Katz praised the efforts and stated that the Crypto Unit successfully identified the wallets holding the stolen assets.
The Office of the Attorney General (OAG) also secured an agreement to freeze the stolen USDT through cooperation with Tether Limited.
Additionally, a search warrant is now active with the aim of freezing the remaining stolen USDC.
Holding Scammers Accountable
The lawsuit filed by AG James isn’t merely to recover the stolen $2.2 million.
James also seeks to impose penalties and restitution for the offenders and victims respectively.
Additionally, it aims to enforce a permanent ban on the scammers and prevent them from engaging in fraud in the future.
“Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” James said in her statement.
She also emphasized the importance of being wary of unsolicited messages promising jobs or other opportunities.
The Rising Threat of Job Scams
The latest development shows that scammers are becoming brazen lately, and are now targetting individuals who are eager to work remotely.
The US Consumer Financial Protection Bureau (CFPB) had previously warned about a surge of scams like these.
In a June 2024 report, the agency noted that scammers now pose as employers looking for people to perform simple tasks like rating restaurants or clicking buttons to “optimize” services.
After completing simpler ones, victims were typically asked to pay using crypto to unlock further tasks—only to realize that they were paying directly into the wallets of scammers.
Overall, the swift action by James and other law enforcement agencies shows the importance of remaining cautious and avoiding being a victim of similar scams.
Some of the best ways to avoid being robbed this way include:
- Treating unsolicited messages offering jobs with skepticism—especially those that require upfront payments.
- Confirming the legitimacy of an employer before sharing personal information.
- Avoiding requests to transfer funds to unhosted wallets.
As the investigation unfolds, victims can take solace, knowing that the stolen funds will soon be returned.
