Apple Sued Over Alleged Crypto Scam Apps

Case Overview: A class action lawsuit claims Apple allowed fraudulent cryptocurrency apps on its App Store, misleading consumers and causing financial harm.  

Consumers Affected: Individuals who downloaded or used the fraudulent cryptocurrency apps Digicoins, SolLuna, or Forex5 from the App Store.

Court: U.S. District Court for the Northern District of California, San Jose Division

A lawsuit has been filed against Apple, accusing the tech giant of enabling fraudulent cryptocurrency apps on its App Store that allegedly scammed users out of substantial sums of money. Plaintiffs Sandeep Kapil, Gabriela Gomez, and Kim Sallen claim they were misled by Apple’s promises regarding the safety of its platform.

Apple Accused of Enabling Fraudulent Cryptocurrency Apps on App Store

Kapil, one of the plaintiffs, alleges he was persuaded to download the app Digicoins by an individual posing as a financial expert in an online group. Encouraged to invest increasing amounts of money, he eventually lost over $1.2 million when the app froze his account and became inaccessible. Similar claims were made about the apps SolLuna and Forex5, which plaintiffs assert were designed solely to steal users’ funds.

The lawsuit outlines a scheme in which victims were contacted online and encouraged to download the fraudulent apps. These apps reportedly mimicked legitimate cryptocurrency platforms, presenting users with fake trading data to build trust. When users attempted to withdraw funds, the apps demanded excessive fees or blocked access entirely.

Lawsuit Alleges Apple Misled Consumers About App Store Safety

According to the lawsuit, the scam began with scammers contacting individuals through social media or other online platforms, presenting high-yield investment opportunities in cryptocurrency. After gaining trust, victims were encouraged to download the fraudulent apps from the App Store and deposit money.

These apps reportedly simulated real trading activity to make it seem as though users were earning returns on their investments. When users attempted to withdraw their earnings, they were faced with demands for additional payments or had their accounts locked, leaving their assets inaccessible.

The plaintiffs argue that Apple’s extensive marketing of its App Store as a secure platform gave them a false sense of trust. Apple promotes the App Store as a curated environment where all apps undergo a review process to ensure compliance with safety and legal standards. For financial apps, including cryptocurrency platforms, Apple claims to enforce stricter requirements.

The lawsuit contends that Apple failed to meet these promises, allowing fraudulent apps to exploit users. Plaintiffs allege that Apple’s representations about security led them to believe the apps were legitimate. The case further asserts that Apple profited from the transactions processed through these apps, adding to the plaintiffs’ claims of negligence.

Apple Faces Other Lawsuits Over Privacy and Product Defects

This case is not the first legal issue Apple has faced. Recently, Apple agreed to pay $95 million to settle allegations that its Siri voice assistant recorded private conversations without user consent. Additionally, a class action lawsuit filed in November accused Apple of failing to address defects in its AirPods Pro, which allegedly caused persistent audio problems for users.

In the Apple crypto apps class action lawsuit, the plaintiffs are seeking damages for their financial losses and an injunction to prevent similar incidents in the future. The case also aims to represent all individuals who downloaded or used Digicoins, SolLuna, or Forex5.

Case Details

• Lawsuit: Kapil et al. v. Apple, Inc. 
• Case Number: 5:24-cv-09304
• Court: U.S. District Court for the Northern District of California, San Jose Division

Plaintiffs' Attorneys

• Timothy G. Blood, Leslie E. Hurst, Thomas J. O’Readerdon II, and Adam M. Bucci (Blood Hurst & O’Reardon, LLP)
• Ben Barnow and Anthony L. Parkhill (Barnow and Associates, P.C.)

Have you downloaded any cryptocurrency apps from the App Store? Share your experience in the comments below.