Apple and Google have received a letter from a U.S. legislator asking for an explanation on how they prevent fraudulent bitcoin apps from being uploaded to the App Store and Google Play Store.
Sen. Sherrod Brown, who is in charge of the Senate Committee on Banking, Housing, and Urban Affairs, wrote two letters on July 27. One was to Apple CEO Tim Cook, and the other was to Google CEO Sundar Pichai.
In the letter, Sen. Brown asks for more information about “what steps your company is taking to stop fraudulent activity in your app store.”
“Crypto trading platforms and exchanges have seen a spike in popularity in recent years, with millions of users downloading mobile apps to trade and invest in digital assets,” stated Sen. Brown. “Millions of Americans utilize smartphone apps to invest in unregulated digital commodities such as cryptocurrency.”
A more particular issue for Brown appears to be stories of “fake crypto programs that have defrauded hundreds of investors.”
According to an FBI assessment, bogus cryptocurrency apps and wallets purporting to represent sound investment options have flooded the market. Approximately $42.7 million was stolen from 244 investors, according to the findings of the investigation.
In a letter from Brown, Apple and Google are being asked to give information on their app review processes, the steps they take to avoid fraudulent crypto apps, and other information in a letter from Brown. He has requested a response from each company by Tuesday, August 10th.
In the past, Apple has been accused of facilitating crypto fraud via its App Store. As far back as the year 2021, an individual claimed that the corporation allowed a phone program to steal more than $600,000 of his Bitcoin.
Silicon Valley has also been a target of fraudsters in previous years. In the year 2020, scammers gained access to Apple’s official Twitter account in order to promote a Bitcoin scheme. Nevertheless, Sen. Brown’s letter does not go into depth about this type of cryptocurrency scam, which is focused on fraudulent apps and wallets for iPhones and other mobile devices.