Weekend Wrap: Google sued over $5M scam app, Malaysia nabs illegal miners and more

Google Faces Lawsuit Over Delayed Action on Crypto Scam App

A proposed lawsuit alleges that Google took too long to remove a fraudulent crypto app, resulting in over $5 million in damages. The complaint was filed by Maria Vaca in the California Superior Court of Santa Clara County on August 13, and it seeks a jury trial.

According to Vaca, Google took three months to take down the app known as Yobit Pro, which posed as a crypto wallet but was actually operated by scammers. Vaca claims that Google made misleading statements about the "authenticity, safety, and security" of apps available on its platform.

Vaca alleges that she invested $4.6 million in Yobit Pro from February to July of the previous year. When her account balance grew to $7 million, the app demanded an additional $500,000 for "taxes" before allowing her to withdraw her funds. Despite sending the money, Yobit Pro then requested another $2 million for "verification." Vaca refused, and soon after, she began receiving threatening messages from unknown individuals.

The lawsuit claims that Vaca reported the issue to the Consumer Financial Protection Bureau (CFPB), which then alerted Google on the same day. Google reportedly took action only three months later, affecting at least five other users with similar experiences.

In response, Google sued two individuals in April, accusing them of distributing and promoting fraudulent crypto apps. Google has not yet responded to requests for comment.

Crypto YouTuber Ian Balina Granted Appeal Opportunity

A Texas federal judge has permitted crypto YouTuber Ian Balina to appeal a ruling concerning his promotion of unregistered securities via Sparkster (SPRK) tokens. The appeal will determine whether Balina's actions took place within the United States, potentially leading to a dismissal of the case if the appeal court finds the promotions occurred abroad.

Judge David Alan Ezra's August 16 order noted that if the appeal court concludes that Balina's activities were not domestic, it could resolve the litigation entirely due to the extraterritoriality of the Securities Act violations.

In May, Judge Ezra partially sided with the SEC, ruling that Balina’s SPRK promotions targeted US investors and fell under US securities laws. Balina had argued that the SEC lacked jurisdiction as the transactions occurred outside the US, but this argument was rejected.

Malaysian Authorities Arrest Seven in Bitcoin Mining Raid

Authorities in Malaysia have apprehended seven individuals suspected of running an illegal Bitcoin mining operation near Kuala Lumpur. The Sepang district police seized 52 Bitcoin mining rigs, along with vehicles, laptops, and mobile phones, valued at approximately $57,000 (250,000 Malaysian ringgit), according to local news outlet The Star on August 18.

The arrested individuals, including three Malaysians and four foreign nationals aged between 30 and 74, were reportedly involved in mining activities that included electricity theft. Police Chief Wan Kamarul Azran Wan Yusof noted that none of those detained had prior criminal records, and the operation was aimed at uncovering illegal Bitcoin mining activities.

Source - https://cointelegraph.com/news/what-happened-in-crypto-on-the-weekend