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Scammers steal $2.2 million from New York Residents using Fake Remote Jobs

Bad actors in the crypto space defrauded New York residents of $2.2 million using text messages promoting fake remote jobs alerts. 

The development was made public by a Jan 9 press release by the Office of the New York State Attorney General. 

New York Attorney General Letitia James filed a lawsuit to recover the looted amount in crypto held in digital wallets and stolen from New Yorkers and victims across the country in a remote job scam.

“ Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” said Attorney General James. 

“Scammers sent text messages to New Yorkers promising them good-paying, flexible jobs only to trick them into purchasing cryptocurrency and then stealing it from them. The cryptocurrency that has been frozen thanks to my office will be available to help New Yorkers defrauded by this scam. I urge all New Yorkers to be cautious of text messages from unknown senders claiming to offer jobs or other opportunities, and to report any scams to my office.” She added. 

The scam was uncovered by a joint operation by the Office of the Attorney General (OAG), together with the U.S. Secret Service and the Queens County District Attorney’s Office. 

Text Messages promoting fake job offers

The victims of the scam were targeted with text messages promoting lucrative remote jobs and were tricked into purchasing cryptocurrency as part of the process. 

Queens District Attorney Melinda Katz highlighted the entire scam process in the press release while thanking Tether and Circle USDC for the role they played in freezing the stolen loot. 

“Work scams that prey on those seeking legitimate employment not only rob victims of their hard-earned money but also shatter their trust in the job market,” said Melinda Katz 

“In this case, the perpetrators used advanced technology to lure victims into depositing cryptocurrency and stole millions of dollars in the form of stablecoins. Based on a referral from the U.S. Secret Service, my Cryptocurrency Unit was able to identify and trace over $2 million in stolen crypto and identify the digital wallets where these coins were being held. Partnering with State Attorney General Letitia James’ Investor Protection Bureau, we were able to freeze the tokens to preserve victim funds while the Attorney General’s office sought to recover the stolen millions. 

I want to thank the diligent prosecutors and investigators in my Cryptocurrency Unit and members of the Attorney General’s office for their outstanding work on this case. I also want to acknowledge Tether and Circle Internet Group, inc. for their crucial assistance.” Melinda Added. 

Tether and Circle’s role in the bust 

Tether and Circle, the two stablecoin issuers involved in the matter due to their stablecoins being the preferred choice of the scammers played a key role in freezing the funds. 

The two stablecoin issuing companies cooperated with the Office of the Attorney General (OAG) during the investigations. 

OAG secured Tether Limited’s voluntary agreement and cooperation to freeze the stolen USDT, and the Queens County District Attorney’s Office secured a search warrant to freeze the USDC stolen in the scam. 

The frozen funds make it possible for the loot to be recovered and returned to the victims. 

Last year, Web 3 security firm Cyvers revealed that Pig Butchering was the most common crypto scam in the United States in 2024. 

Pig Butchering scams are long-term investment scams crafted to gain the trust of the victims before quietly draining them of their money. The Job application scam is the latest strain of this popular crypto scam.