Senate Banking Committee chief Sherrod Brown has sent a letter to these companies asking them to explain crypto-related apps available on their App Store and Playstore as well as ways to deal with counterfeit apps. The Federal Bureau of Investigation (FBI) recently warned that fake crypto apps are causing huge losses to investors. In the letter, Brown said, “Cyber criminals have created fake mobile apps by stealing firms’ logos, names and other identifying information. This makes it necessary for app stores to take security measures.”
These companies were asked in the letter, “Whether your App Store has taken action to remove counterfeit crypto apps? If so, please provide information.” A reply from Apple and Google is awaited on this. Recently, there was a case of a Hollywood producer Ryan Felton doing crypto scams. Felton defrauded crypto investors to meet his rising expenses. Felton, who has been involved in some big film projects, is reported to have received about 2.5 million dollars from the scam. The scam was done through two initial coin offerings (ICOs). One was for a streaming platform called ‘FLiK’ and the other for crypto exchange CoinSpark.
The promotion for the streaming platform FLiK claimed that it would surpass Netflix. In CoinSpark’s ICO, investors were told that 25 percent of the exchange’s profits would be given as dividends. Investors took interest in both these ICOs but only Felton got the returns from them. Felton was charged with money laundering and fraud.
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