A Senator in the United States has sent a letter to the CEOs of popular companies, Google and Apple. In the letter, the senator asked them to help tackle the issue of fraud using fake cryptocurrency apps.
Both platforms have app stores where users can upload applications for others to download. The senator asked both executives to provide a breakdown of how they vet and approve crypto wallets and trading apps. Both CEOs are to report to the Senator before August 10th.
Chairman Of Senate Banking Committee Queries CEO Of Google And Apple
The Chairman, Senator Sherrod Brown, wrote to both Tim Crook (Apple) and Sundar Pichai (Google) in different letters. According to Brown, several Americans use mobile applications to invest funds in unregulated virtual assets.
Meanwhile, various crypto applications have provided better ways for users to trade crypto. However, reports show that several fake crypto applications have emerged.
Crypto investors have lost millions to these apps. Furthermore, Brown referred to the FBI’s latest investigation.
The FBI said there is increased growth in the number of crypto applications. These are usually built by fraudsters to dupe investors.
“As stated in the FBI’s report, fraudsters have defrauded dozens of investors by creating apps that have the logo and name of an actual trading firm. The FBI identified over 244 crypto scam victims with an estimated loss of over $42.7 million.” Brown added.
Google And Apple To Submit Detailed Report Of How They Vet Apps
Therefore, the senator has asked both firms to report how they vet apps on their mobile app stores. Additionally, both firms are to submit a report on how they ensure the protection of users and fight fraud.
Also, they are to highlight what they have done to stop such activities since 2020. Meanwhile, both Google and Apple have from now till August 10th to respond to the letter.
In recent months, crypto regulators have begun to enforce strict sanctions against crypto scammers. This is due to the recent high rate of crypto scams amid the bearish market.
In California, the Chief Executive Officer of TBIS (Titanium Blockchain Infrastructure Services) agreed to take part in a fraudulent scheme using the company’s ICO (initial coin offering).
Furthermore, the CFTC filed a lawsuit against a South African-based company, Mirror Trading International, for violating registration rules and fraud. In addition, Randell Carter, owner of a crypto company, My Big Coin, was also linked to crypto fraud.
The CFTC filed a lawsuit against the crypto entrepreneur, citing cases of unauthorized transactions and wire fraud. The court found Carter guilty last week.