Apple Inc. finds a way to escape from fake Crypto Wallet Hosting wallet
The world’s largest technology company by market capitalization, Apple Inc., managed to get rid of the proposed class action for allegedly hosting a fake crypto wallet, Toast Plus.
Hodana Diep initially filed a complaint against the company in US Maryland District Court in September 2021. The plaintiff alleged that the technology company had violated the Computer Fraud and Abuse Act, the Electronic Privacy Communication Act and other technology laws applied to current circumstances in the online world, the complaint said .
Related reading: Crypto trademark filings this year surpass 2021 by more than 3,600
In line with Diep’s allegations, Apple facilitated the download of a duplicate app with similar icons, logos and designs as the original product to a legitimate app publisher. And after she interacted with the app, her account was automatically deleted from the fake app, losing her over $5,000.
Alongside, another plaintiff in the class action, Ryumei Nagao, claimed to have lost $500,000 due to the reputable company hosting a fake crypto application.
Afterwards, in December 2021, the lawsuit moved from the US District Court of Maryland to the US District Northern Court of California.
According to Bloomberg Law’s latest report on the September 2 ruling, the defendant company succeeded in appearing immune, prompting U.S. Northern District Court Judge Phylis J. Hamilton to agree that the company protects itself from third-party claims according to 230 Act. Because, under the law, Apple is a publisher of the content provided by another creator and is not a creator itself, Hamilton said.
The latest statement from the jury comes after the tech company wanted the court to throw out the fake wallet lawsuit around May 2022. The judge also favored the defendants’ arguments at the time that the 230 Act does not require the tech company to be held liable for fake apps from third-party counters.
Is Apple hosting fake crypto wallets on its network?
Getting hold of the right crypto wallet is of utmost value to users. We scoured PrivacySavvy, a leading security and privacy information site, for some expert insights on the subject. While using a hardware wallet to store digital assets is the best approach, picking up the right one, whether it’s an app wallet, is critical to keeping your crypto safe.
The insights gleaned from security experts seem to have a direct correlation to why Apple wanted to ensure that they leave a statement of doing everything possible to ensure that users only have access to the secure wallets.
Hamilton also favored the firm’s opinion that case filers do not present authentic sources of information, specific time and content to support their claims. And the information provided has a false representation that doesn’t even meet the requirements of California and Maryland consumer protection laws.
The court further declared that Diep’s claim must be rejected because the company emphasizes under its terms and conditions that the firm does not take responsibility for the exploits and damages that occur via a third-party counter.
A member of the Senate, Sherrod Brown (D), also expressed his doubts about Apple and Google, sending letters to the CEOs of both companies warning of illegal crypto apps looting users’ money. Brown, chairman of the Senate Banking, Urban Affairs and Housing Committee, stepped up to investigate the two largest companies after the FBI published a warning:
“Cybercriminals Create Fake Cryptocurrency Investment Applications Defraud US Investors.”
Related Reading: Apple and Google Under US Senate Scrutiny for Crypto App Scams
According to the July 18 FBI report, more than 240 people collectively lost $42.7 million on the apps downloaded from the Google and Apple stores.
Featured image from Pixabay and chart from TradingView.com
