New York Attorney General Letitia James has filed a lawsuit to recover $2.2 million worth of cryptocurrency stolen from victims in a sophisticated remote job scam targeting New Yorkers and others across the US. 

Working with the US Secret Service and the Queens County District Attorney’s Office, the Attorney General’s Office (OAG) uncovered a scheme where scammers lured victims through fraudulent text messages, claiming to offer flexible remote job opportunities.

The investigation revealed that the scammers persuaded victims to open cryptocurrency accounts and purchase stablecoins—digital currencies designed to maintain a consistent value—which were then transferred to untraceable digital wallets controlled by the scammers.‍

Text Messages That Preyed on Vulnerability

The scammers sent unsolicited text messages offering remote jobs with “numerous benefits and flexible requirements.” Victims were instructed to set up cryptocurrency accounts on licensed platforms, such as Coinbase, Gemini, and Crypto.com, and deposit funds under the pretense of conducting “product reviews” for fake companies. 

Victims were told that the stablecoins deposited into their accounts would be used to legitimize the market data they were generating and that they would earn commissions along with their initial deposits.

One New York victim lost more than $100,000 after being promised a registration bonus and commissions during a "mandatory training period." The scammer, posing as a trainer, guided the victim to purchase stablecoins and transfer them to a fraudulent wallet under the guise of conducting product reviews. 

When victims attempted to withdraw their funds, the scammers imposed fabricated fees, such as “credit score improvement fees” or “blockchain verification fees,” to extract additional payments.

Cooperation Leads to Freezing of Funds

The OAG investigation secured the voluntary cooperation of Tether Limited to freeze stolen USDT funds, while the Queens County District Attorney’s Office obtained a search warrant to freeze stolen USDC. These efforts have ensured the preservation of millions of dollars in stolen cryptocurrency, which could be returned to victims pending court approval.

“Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” said Attorney General James. “The cryptocurrency that has been frozen will be available to help New Yorkers defrauded by this scam. I urge all New Yorkers to remain cautious of unsolicited job offers and report any scams to my office.”

Legal Innovation: Serving Lawsuit via NFT

Attorney General James announced her office’s intention to serve notice of litigation to the scammers using a nonfungible token (NFT). The NFT will link to an official OAG website containing all legal pleadings, ensuring the scammers are notified of the lawsuit even if their identities remain unknown. This marks the first time a government regulator in the US has used an NFT to serve legal notice.

The scammers capitalized on the growing demand for remote work, preying on individuals seeking flexible employment. By requiring victims to move funds from registered and licensed platforms to unregulated wallets, the scammers bypassed know-your-customer (KYC) safeguards and obscured the origins of the stolen funds. 

Victims were further manipulated with promises of high returns, creating a cycle of trust that ultimately led to significant financial losses. Attorney General James has urged New Yorkers who believe they were defrauded by similar scams to file an online complaint with her office.