Crypto Scam Victim Sues Google for $5 Million Over Fraudulent App

Google's app vetting process comes under fire as a Florida investor sues for $5 million over a crypto scam app.

Key Insights

  • Florida resident Maria Vaca is suing Google for $5 million after losing money to a crypto scam app called Yobit Pro, downloaded from the Google Play Store.
  • Vaca invested $4.6 million, was unable to withdraw funds, and received death threats when she refused further payments.
  • Google allegedly took three months to remove the app after being notified, despite its own recent lawsuit against fraudulent app developers.

SAN FRANCISCO (MarketsXplora) – A Florida resident has filed a lawsuit against tech giant Google, seeking at least $5 million in damages after falling victim to a cryptocurrency scam facilitated through an app downloaded from the Google Play Store.

Maria Vaca, the plaintiff, claims she invested approximately $4.6 million in cryptocurrency between February and July 2023 using an app called Yobit Pro. According to the lawsuit filed in California, Vaca believed she was making profitable investments when the app showed her balance had grown to about $7 million.

The situation took a sinister turn when Vaca attempted to withdraw her funds. The app allegedly demanded an additional $500,000 for “taxes,” which Vaca paid. However, when a further $2 million was requested, Vaca refused and reportedly received death threats via WhatsApp from unidentified cybercriminals.

Vaca’s legal complaint states that she contacted law enforcement and the Consumer Financial Protection Bureau (CFPB), which promptly forwarded the complaint to Google. However, the lawsuit alleges that Google took three months to remove the Yobit Pro app from the Play Store.

Google’s App Vetting Process Under Scrutiny

The plaintiff argues that she trusted the app’s legitimacy based on its availability in the Google Play Store, believing that Google effectively prevents scam apps from being listed.

“As a result of Google’s material misrepresentations and other deceptive conduct, Ms. Vaca has been significantly damaged,” the lawsuit states, citing financial losses exceeding $5 million and severe emotional distress.

Vaca’s lawsuit further alleges that approximately 12,759 other Android users installed Yobit Pro, with at least five experiencing similar issues.

Google’s attorneys have requested the case be moved to the United States District Court for the Northern District of California.

This lawsuit comes in the wake of Google’s own legal action against app developers. In April, the tech giant sued two developers accused of getting 87 fraudulent apps approved on the Play Store, affecting an estimated 100,000 people, including at least 8,700 U.S. residents.

While Google’s lawsuit didn’t specifically mention Yobit Pro, it described a similar modus operandi where victims are unable to withdraw funds and are pressured to make additional payments for taxes or fees.

Google acknowledged in its lawsuit the reputational damage caused by such scams, stating,

“Google Play can continue to be an app-distribution platform that users want to use only if users feel confident in the integrity of the apps.”

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of marketsxplora.com. With a passion for words and a sharp business acumen, he captivates readers with captivating storytelling and delivers insightful market analysis.

Leave a Reply