Extradited Developer and Fake Phantom Wallet App Highlight Apple Store Security Breaches

Recent incidents involving malicious crypto wallet apps on Apple's App Store have led to significant financial losses for users and subsequent fraud charges against developers. Nikita Andreevich Sklyuev, also known as Valeriy Dorojkin, was extradited and charged with wire fraud for submitting a fraudulent crypto wallet app. Simultaneously, a fake Phantom wallet app mimicked the legitimate wallet, draining user funds. These cases underscore the urgent need for rigorous app store security measures to prevent such scams.

• Defendant: Nikita Andreevich Sklyuev (also known as Valeriy Dorojkin); developers of the fake Phantom Wallet
• Crime: Wire fraud and fraudulent use of unauthorized access devices; publishing malicious cryptocurrency wallet apps
• Amount Defrauded: $11.8 million by Sklyuev; significant losses, including $100,000 from Matthias (co-founder of the Dubai Blockchain Center) by the fake Phantom wallet
• Method: Submitted malicious cryptocurrency wallet apps to the Apple App Store, stealing private keys and accessing users' funds
• Sentence Received: Sklyuev is awaiting extradition hearing on July 3, 2024; faces up to 20 years in prison and a $250,000 fine. No legal proceedings detailed for the Phantom wallet developers.
• Investigating Authorities: U.S. Department of Justice (DOJ)
• Additional Penalties: N/A
• Prosecutor’s Statement: N/A

• June 2018: Nikita Andreevich Sklyuev submitted the malicious app EOSIO Wallet Explorer to the Apple App Store, disguised as a legitimate cryptocurrency wallet.
• September 2018: A victim in Western New York installed the app and lost control of approximately $11.8 million in cryptocurrency. Sklyuev transferred the stolen funds to various online wallets under his control.
• 2023-2024: A fake Phantom wallet app was published on Apple's App Store by Mota Voxify, listed as an educational app. Users who installed the app and entered their private keys had their funds stolen, including $100,000 from Matthias.
• July 2024: Sklyuev was extradited from Ukraine to the U.S., facilitated by cooperation between the U.S., Romania, and Ukraine. He awaits his hearing on July 3, 2024.

Recent incidents involving malicious crypto wallet apps on Apple's App Store have led to significant financial losses and subsequent fraud charges. Nikita Andreevich Sklyuev, also known as Valeriy Dorojkin, was extradited to the U.S. and charged with wire fraud for submitting a fraudulent crypto wallet app, EOSIO Wallet Explorer, resulting in $11.8 million in losses. Simultaneously, a fake Phantom wallet app mimicked the legitimate wallet, draining user funds, including $100,000 from Matthias, co-founder of the Dubai Blockchain Center. These cases underscore the urgent need for rigorous app store security measures to prevent such scams and protect cryptocurrency investors.