US Senator appeals to Apple and Alphabet over fraudulent cryptocurrency apps

The chairman of the Senate Banking Committee, Sherrod Brown, called on the largest tech giants to make public information about the fight against fraudulent applications for stealing cryptocurrencies.

The official sent an open letter to Apple CEO Tim Cook and Alphabet CEO Sundar Pichai. He asked about the process of approving new apps and adding them to Android and iOS stores.

According to Brown, companies should disclose the process by which certain applications are recognized as safe and can be placed in the app store.

«Cybercriminals are stealing company logos, names, and other identifying information of cryptocurrency firms and then creating fake mobile apps to deceive investors. In this way,they can be made to believe that they are dealing with a legitimate cryptocurrency firm,» the senator said.

Problems with fraudulent apps appear in the crypto news every year. So far, none of the centralized platforms are protected from fraud of any kind. For example, on Twitter, hundreds of thousands of bots defraud investors every day, and YouTube channels are constantly appearing where cryptocurrency is stolen under the guise of giving it away for free.

During a hearing of the US Senate Banking Committee, Senator Brown also raised the issue of problems associated with digital assets.

«Bitcoin can be used for classic fraudulent schemes, such as pyramid schemes and fictitious investments that promise high returns without risk. New ways of deceiving people are not the innovations that most people want to see in the economy,» the official emphasized.

The politician mentioned the collapse of large crypto funds and platforms such as Celsius and Voyager Digital:

«Over the past two months, we have witnessed a startling disaster in the crypto market, which has shown both the disturbing interconnectedness and the enormous risks for crypto companies.»

Brown promised to increase pressure on US financial regulators to take action to stop cryptocurrency fraud.