According to CoinDesk, a fake Ledger app stole millions of dollars from App Store users. TechCrunch uncovered that another app was collecting sensitive user data. Apple removed both apps today. Here are the details.

Fake Scanning App Stole Funds from at Least 50 Users

According to CoinDesk, at least 50 people had their Bitcoin, Ethereum, Solana, Tron, and XRP funds stolen by a malicious app called Ledger Live, which passed through the App Store between April 7 and April 13.

Three major victims experienced seven-figure losses. On April 9, $3.23 million in USDT, on April 11, $2.08 million in USDC, and on April 8, $1.95 million in BTC, ETH, and stETH were stolen.

The report states that the funds could be traced to KuCoin deposit addresses associated with an Audi A6. It is known as a "centralized crypto mixing service that charges high fees to hide illicit flows."

CoinDesk reports that Apple removed the app from the App Store but did not respond to requests for comments. KuCoin, which is facing legal issues related to money laundering violations, also did not comment.

It is not immediately clear how Ledger Lite passed the app review and why Apple did not take action when the first reports of stolen funds emerged.

CoinDesk's report notes that, according to blockchain researcher ZachXBT, "the incident could serve as a basis for a class action lawsuit."

A Tough Day for App Store Review

The Ledger Live case was not the only situation raising concerns about the App Store today.

According to TechCrunch, Apple removed a data collection app called Freecash from the App Store. The app had seemingly "deceived users" over the past few months and had quickly risen in the rankings.

The report states that Freecash became popular on TikTok and promised users that they could "earn money by scrolling TikTok." However, in reality, users were exchanging their sensitive personal data for rewards:

A Malwarebytes report states that the app could collect information about users' race, religion, sexual life, sexual orientation, health, and other biometric data. The app functions as a data broker that matches game developers with users willing to spend money on mobile games. Games promoted on Freecash include titles like Monopoly Go and Disney Solitaire.

The Malwarebytes report was published just a few days after Wired's investigation into the app raised concerns about the scope of user data collected through misleading marketing.

TechCrunch's own investigation found, based on Appfigures and AppMagic data, that a previous version of Freecash, published by Almedia GmbH, was removed from the App Store in mid-2024.

Months later, a current app published by Cyprus-based 256 Rewards Ltd, rebranded as Freecash, rose to the top. This raised questions about whether Almedia returned to the App Store using another developer account.

Here’s TechCrunch:

Almedia's re-entry into the App Store through another developer account could be a way to circumvent a ban imposed on the original Freecash app. Re-entering the App Store using another developer after a ban is a common but rule-breaking tactic. (A spokesperson for Almedia declined to comment on the previous app removal.)

A Washington Post report on the fraudulent app ecosystem highlighted this trend, showcasing several fake apps that disappeared from the App Store and later reappeared under a different developer account. Other independent research has documented this tactic, and it has been reported that the owners of fraudulent apps often operate a portfolio account.

TechCrunch notes that Freecash was removed from the App Store after contacting Apple while working on the story:

After contacting Apple, the company removed Freecash from the App Store due to misleading marketing. Apple pointed to two App Store Review Guidelines, 3.1.2(a) and 2.3.1, that prohibit scamming users, using deceptive tactics, and misleadingly marketing apps.

Meanwhile, Almedia denied the allegations of using artificial traffic redirection or misleading marketing techniques on its platform and added that its apps are "fully compliant with Apple App Store and Google Play Store policies, are live, and regularly pass platform reviews."

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