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Google Takes Legal Action Against Developers of Fake Investing and Crypto Apps
In a groundbreaking move, Google, the tech giant under Alphabet’s umbrella, has filed a lawsuit against two developers responsible for creating and distributing a staggering 87 counterfeit investing and cryptocurrency applications on the Google Play store. This action marks the first instance of a major technology company directly confronting cryptocurrency fraud.
Expressing its steadfast commitment to safeguarding users online, Google’s General Counsel Halimah DeLaine Prado emphasized, “Keeping people safe online is core to our business, and we will not tolerate the misuse of our platforms to facilitate cryptocurrency scams.” Prado further stated, “This litigation is a critical step in holding these bad actors accountable and sending a clear message that we will aggressively pursue those who seek to take advantage of our users.”
According to documents filed in the Southern District of New York on Thursday, Google revealed that the scammers successfully lured approximately 100,000 unsuspecting users to the fraudulent apps by employing enticing names such as SkypeWallet and Starlight.
Deceptive Practices and False Promises
Among the deceptive schemes, the app Starlight targeted Ghanaians through promotional videos on popular social media platforms like TikTok and Instagram. Claiming to offer users an opportunity to earn money by watching videos and completing tasks, Starlight required individuals to invest money upfront, promising returns that were never fulfilled. Similarly, apps like SkypeWallet and TionRT purported to be legitimate cryptocurrency exchanges but ultimately failed to deliver on their commitment to generate profits for investors.
As a result of the ongoing COVID-19 pandemic, illicit crypto operations have witnessed a surge, prompting regulatory authorities to take swift action against major players in the industry. Notably, federal regulators initiated enforcement measures against leading cryptocurrency exchanges such as Coinbase, FTX, and Binance, as well as their respective founders.
In a high-profile case, FTX founder Sam Bankman-Fried faced legal repercussions after being found guilty of embezzling over $10 billion from investors and subsequently receiving a 25-year prison sentence. Additionally, a notable YouTuber faced charges from the Securities and Exchange Commission for orchestrating a fraudulent scheme that defrauded investors of approximately $1 billion, which was then used to purchase luxury items like Rolex watches.
Authorities have also launched investigations into the founder of cryptocurrency lending platform Celsius over concerns related to fraudulent activities. Google’s proactive stance against scammers was further underscored by a previous legal action taken against anonymous individuals towards the end of last year. The company filed a lawsuit against individuals promoting counterfeit versions of its AI chatbot Bard, rebranded as Gemini, which were ultimately identified as malware.
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