Apple User Lost $650k In iCloud Crypto Scam
An Apple user lost hundreds of thousands of dollars in cryptocurrency and non-fungible tokens (NFTs) after an iCloud backup compromised the seed phrase used to access the digital wallet. Many people use the company's cloud service for a variety of reasons, including the slew of subscriptions that Apple now offers for music, videos, games, and more. However, one of the most compelling features of iCloud is the ability to wirelessly backup data on an Apple device, which can be restored in the event the product is lost, stolen, or damaged. Though iCloud backups make it easy for users to have peace of mind regarding data redundancy, it is this very feature that led to a user losing an entire cryptocurrency wallet in a scam.
The emergence and popularity of cryptocurrency and NFTs have brought a new frontier for digitally owning items, but they've also brought new problems to the technology industry. The immense value of certain digital assets make them a target for hackers and scammers alike, which makes it risky to hold online items with high valuations in digital wallets. Other concerns, such as the cash out process for cryptocurrencies and the intense fluctuations in value, demonstrate the risk and reward that comes with cryptocurrency and NFTs. To make matters more complicated, the digital assets do not have legal tender status in the United States, which has significant tax and other legal implications.
Related: Why Facebook Is Calling It Quits On Crypto
Dominic Iacovone, a MetaMask user who also enabled iCloud backups, claims to have lost more than $650,000 in digital assets in a scam chronicled on Twitter. MetaMask is a cryptocurrency and NFT wallet, which holds digital assets, and is most popular for storing
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