Google faces $5M lawsuit over fraudulent crypto wallet app

Google is neck-deep in legal trouble after a woman claims a crypto wallet app she downloaded from its Play Store cleaned out her assets. Maria Vaca, the unfortunate victim, has slapped Google with a $5 million lawsuit. 

She alleges that the tech giant’s lax oversight allowed a fraudulent app to thrive on its platform, leading to her financial nightmare. 

Vaca filed her case in a California state court, pointing the finger at Google for failing to protect users like her from these sneaky, malicious apps.

Scammers continue to bleed crypto users dry

Crypto scams have continued to boom, and it’s no joke. In just the first half of 2024, scammers raked in around $679 million. These scams are fast becoming the second most lucrative form of fraud, right behind bank transfer scams.

These scams come in many forms, but the ones pulling in the most cash are the fake mobile apps and wallets. Scammers have gotten really good at creating apps that look like the real deal. 

They lure in users with slick designs and promises of easy profits, only to steal sensitive information like private keys. Once they have that, they can empty wallets faster than you can say “blockchain.”

And if that wasn’t enough, there are investment scams that promise sky-high returns. They target people who think they’re getting in on the next big thing, only to watch their funds vanish into thin air. 

Celebrities and influencers aren’t safe either—scammers impersonate them on social media, promoting fake giveaways and investment opportunities that require you to send crypto upfront. 

Surprise, surprise: the victims never see their money again.

Flash loan attacks are another way these scammers are cashing in. They take out unsecured loans, manipulate the market, and walk away with massive profits, leaving regular investors holding the bag. 

And let’s not forget the fraudulent Initial Coin Offerings (ICOs), where scammers hype up fake cryptocurrencies, rake in investments, and then disappear without a trace.

For every person like Maria Vaca who takes legal action, there are countless others who suffer in silence. In 2024, only 42% of people who fell victim to crypto scams reported it to the authorities. 

That means a lot of people are out there, licking their wounds and trying to move on without any help. 

This lack of reporting is a big part of why these scams keep happening—there’s just not enough awareness or education about the risks.

The numbers are terrifying. In 2023 alone, the estimated losses from crypto scams hit a staggering $4.6 billion. That’s billions with a “B.” And as more people jump into crypto, the pool of potential victims keeps growing.