Apple Pulls Fake Crypto Wallet, Data-Harvesting Apps After Millions Stolen in App Store Scandal

Apple has removed a malicious app from the App Store that was posing as a legitimate cryptocurrency wallet called "Ledger Live." The fraudulent app reportedly stole millions of dollars from users before being taken down. Until now, it's baffling to see how scam applications manage to bypass App Store review processes.

According to reports, at least 50 users were affected, with losses involving major cryptocurrencies such as Bitcoin, Ethereum, and Solana. Some victims reportedly lost millions.

Fake Wallet App Bypassed App Store Review

According to CoinDesk's report, the app successfully mimicked the branding and interface of a trusted crypto wallet, allowing it to appear legitimate to unsuspecting users. Despite Apple's strict review policies, it remained available long enough to cause significant financial damage before detection and removal.

Investigators found that stolen funds were quickly transferred through crypto exchange deposit addresses and routed into mixing services, making recovery and tracing more difficult.

Security experts note that these types of scams rely heavily on imitation and social engineering rather than technical exploits, making them especially dangerous for everyday users who may not detect subtle inconsistencies.

Separate App Accused of Data Harvesting Also Removed

In a separate case, Apple also removed another popular app that was reportedly collecting sensitive user data under the guise of offering rewards for simple tasks. TechCrunch reported that this was the "Freecash" app on the App Store.

The app gained traction through social media promotion before investigators uncovered its true function.

9to5Mac reported that it gathered personal information such as demographic details, behavioral data, and other identifiers that could be used for advertising or data brokerage purposes.

Analysts believe the app operated in a way that connected user data to advertisers and third-party developers.