Just as CoinDesk reported that a fake Ledger app had stolen millions from App Store users, TechCrunch revealed that another app had been collecting sensitive user data. Apple removed both today. Here are the details.
Fake scanning app stole funds from at least 50 users
According CoinDeskAt least 50 people had their Bitcoin, Ethereum, Solana, Tron, and XRP funds stolen between April 7 and April 13, after a malicious app called Ledger Live passed review and landed on the App Store.
Three of the largest victims lost seven-figure sums: $3.23 million in USDT stolen on April 9, $2.08 million in USDC on April 11, and $1.95 million in BTC, ETH, and stETH drained on April 8.
The report says the funds were traced to KuCoin deposit addresses associated with the Audi A6, “a centralized cryptocurrency mixing service known for charging high fees to obfuscate illicit flows.”
CoinDesk says Apple removed the app from the App Store, but did not respond to requests for comment. Neither does KuCoin, which has faced legal problems associated with money laundering violations.
It is not immediately clear how Ledger Lite passed the app review, nor why Apple did not take action when the first reports of stolen funds began to appear after April 7.
CoinDeskThe report notes that “the incident may form the basis for a class action lawsuit,” according to Blockchain researcher ZachXBT.
A tough day for App Store review
The Ledger Live case was not the only one that raised concerns in the App Store today.
According TechCrunchApple has pulled a data collection app called Freecash from the App Store, after the app “appeared to have misled users by rapidly rising to the top” in recent months.
The report notes that Freecash became popular on TikTok by promising users that they could “earn money simply by scrolling through TikTok,” when in reality, users were effectively exchanging sensitive personal data in exchange for rewards:
A report from Malwarebytes grades that the app may collect information about users’ race, religion, sex life, sexual orientation, health and other biometric data, adding that the app is essentially a data broker that seeks to connect game developers with users who are willing to install and spend money on mobile games. Games promoted on Freecash include Monopoly Go and Disney Solitaire, among others.
The Malwarebytes report arrived a few days later. cabling I also looked at the app.raising concerns about its misleading marketing and the extent of user data it may have been collecting.
TechCrunchAppfigures and AppMagic’s own investigation, based on data from Appfigures, found that an older version of Freecash, published by Almedia GmbH, was removed from the App Store in mid-2024.
Months later, an existing app called Rewards, published by Cyprus-based 256 Rewards Ltd, was renamed Freecash and rose to the top, raising questions about whether Almedia used another developer account to return to the App Store.
here it is TechCrunch:
Almedia’s re-entry into the App Store through another developer account may have been a way to bypass the initial Freecash app ban. Using another developer to re-enter the App Store after a ban is a common tactic, although it violates the rules. (Almedia’s spokesperson declined to comment on the earlier removal of its app.)
A Washington Post report on the scam app ecosystem noted this trend, highlighting several scam apps that would disappear from the App Store and then reappear with a different developer account. Other independents research have documented this tactic Also, and often, the owners of fraudulent applications operate a portfolio of accounts, it has been reported.
TechCrunch says that Freecash was removed from the App Store after the site contacted Apple for comment, while working on the story:
After TechCrunch contacted Apple for comment, the company removed Freecash from the App Store for violations of its rules on Monday, citing misleading marketing. Apple pointed out to TechCrunch two App Store Review Guidelines3.1.2(a) and 2.3.1, which prohibit defrauding users, engaging in bait-and-switch tactics, and marketing applications in a deceptive manner.
Meanwhile, Almedia “denied accusations of generating artificial traffic to its platform or using deceptive marketing techniques” and added that its apps “are fully compliant with the policies of the Apple App Store and Google Play Store, as evidenced by the fact that they are active and pass regular platform reviews.”
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