Apple Facing Class Action Lawsuit Over Alleged Crypto Scam Apps Listed on App Store

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Three individuals who say they fell victim to scam cryptocurrency trading apps have filed a proposed class action lawsuit against Apple, alleging the tech giant has misrepresented that certain apps on the App Store are thoroughly vetted, safe and legally compliant.

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Per the 28-page lawsuit, the plaintiffs relied on Apple’s longstanding representations that its App Store is “a safe and trusted place” when they downloaded and invested money on apps claiming to be digital asset trading platforms, including Digicoins, SolLuna and Forex5. The case contends that the apps were created solely for “pig butchering” scams—a type of investment fraud in which the victim is lured into making what appear to be legitimate trades before their contributed funds are stolen.

“Apple has promoted its App Store’s vetting process as a stringent security measure, publicly detailing how apps are reviewed by experts who assess them for malware, privacy concerns, and other security risks,” the filing says.

Apple also claims to maintain specific security standards for crypto exchange platforms that it makes available for download, the suit relays. For instance, the tech company represents that these apps must possess the appropriate licensing, come from approved financial institutions and comply with all applicable laws, the complaint shares.

“Given this promotion, a reasonable consumer would assume that apps made available for download are free from fraudulent or malicious intent, especially for highly regulated fields like finance and digital asset trading,” the lawsuit contends.

According to the Federal Deposit Insurance Corporation (FDIC), perpetrators often initiate pig butchering scams by randomly contacting consumers through text messages, dating apps or social media platforms. Scammers may then offer high-yield investment opportunities in virtual assets, such as cryptocurrency, and instruct victims to invest money into fake trading platforms, the FDIC reports.

When users attempt to withdraw their earnings, alleged pig butchering apps like Digicoins, SolLuna and Forex5 may first require them to pay exorbitant fees or fake taxes, the filing explains. The lawsuit alleges that these apps may also lock victims out of their accounts and route their assets to the perpetrators’ personal accounts.

One plaintiff is a California resident who says he joined an online investment discussion group in August 2023 led by an individual using the name Kevin Wilson. The case claims that Wilson, a “claimed financial expert,” encouraged the plaintiff and other group members to download Digicoins and continuously invest larger sums to purchase cryptocurrency. As the filing tells it, the plaintiff lost more than $1,236,000 after his assets were suddenly frozen in February 2024 and the app became non-functional.

“Sophisticated digital actors, such as Apple, are well aware of the threat of these schemes,” the complaint claims. “Apple knew, or should have known, that these types of frauds exist and should have protected [the plaintiffs] and Class members against these types of frauds.”

The lawsuit looks to represent anyone who downloaded or otherwise used Digicoins, SolLuna or Forex5 from the Apple App Store within the relevant statutory period.

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