Trust Wallet class action alleges app enabled cryptocurrency fraud
A class action lawsuit alleges Trust Wallet enabled cryptocurrency fraud by hosting unvetted decentralized applications (dApps) within its platform.Summary
A class action lawsuit has been filed against Trust Wallet Inc., alleging the company's decentralized application (dApp) browser facilitated widespread cryptocurrency fraud. Plaintiff Kuang Yu Lin claims Trust Wallet failed to warn users about the risks associated with embedded third-party sites, allowing scammers to deceive users into transferring cryptocurrency to fraudulent investment interfaces. Lin alleges he lost over $170,000 after depositing cryptocurrency into a fraudulent interface believing it was part of the legitimate Trust Wallet platform, and was unable to withdraw his funds. The lawsuit asserts that Trust Wallet violated New York General Business Law through negligent misrepresentation and common law fraud, despite advertising itself as a secure platform. The plaintiff seeks declaratory and injunctive relief, as well as compensatory and punitive damages for a nationwide class of affected consumers. This case comes amidst similar accusations against cryptocurrency exchange Coinbase regarding a “pig butchering” scam.
(Source：Class Action Lawsuits)