Apple is facing a class action lawsuit over a cryptocurrency scam app that reportedly defrauded users of tens of thousands of dollars, raising new questions about the tech giant’s longstanding claims of App Store security.
The app, known as Swiftcrypt, is at the centre of the case, which accuses Apple of negligence for allowing the scam to flourish within its tightly controlled ecosystem. The lawsuit alleges that Apple’s assurances of safety and rigors app reviews were “false and misleading” and contributed to victims placing trust in the fraudulent platform.
Victim Claims $80K Lost Through Scam App
According to the complaint, lead plaintiff Danyell Shin downloaded Swiftcrypt late last year after being introduced to it by members of an online investment group. Trusting the app in part because it was available on Apple’s App Store, a platform marketed by Apple as secure and vetted, Shin invested over $80,000 before discovering she had been locked out and her funds had vanished.
The scam followed a classic “pig butchering” model, a term used in crypto fraud circles to describe elaborate, long-term cons where scammers gradually build trust with victims before extracting large sums of money. In Swiftcrypt’s case, victims were encouraged to make increasingly larger deposits under the illusion of high returns, only to lose everything once the app suddenly ceased access or functionality.
App Store Walled Garden Under Fire
Apple has long touted the App Store’s “walled garden” approach as a strength. By controlling what apps are allowed onto its platform, the company argues it can provide a safe, reliable experience for users free from malware and fraud. This claim is a cornerstone of Apple’s defence in regulatory battles over platform monopolies and sideloading restrictions.
But the lawsuit filed by Shin challenges the integrity of this narrative. Her legal team argues that Apple’s representation of the App Store as a secure, fraud-free environment gave users a false sense of confidence. The presence of Swiftcrypt on the App Store, they contend, should have never occurred under the company’s touted review standards.
“Apple claims it rigorously vets apps before approval, but this case shows that those claims are either overstated or outright untrue,” the lawsuit alleges. It further states that Apple “directly contributed to the illusion of legitimacy” that led Shin and others to trust Swiftcrypt.
Pig Butchering Scams on the Rise
Pig butchering scams have seen a rise globally, especially in the world of cryptocurrency, where regulatory oversight is limited and investor protections are often weak or nonexistent. These scams often begin with unsolicited messages from individuals posing as traders or financial advisors, typically through social media or dating apps. Over time, they groom victims by offering fake investment opportunities that promise high returns.
According to cybersecurity experts, once trust is established, victims are directed to fraudulent platforms like Swiftcrypt, where they unknowingly transfer real funds into wallet addresses controlled by the scammers. The scams are often sophisticated, with slick user interfaces and real-time “account dashboards” that create the illusion of profit accumulation.
In Shin’s case, her trust in Apple’s App Store allegedly played a decisive role in her decision to invest. “The appearance of Swiftcrypt on the App Store was not just incidental,” her legal team argues. “It was a key factor in convincing users the app was safe.”
Legal and Industry Implications
The lawsuit marks another chapter in Apple’s increasingly complicated relationship with app oversight. While the company continues to defend its curation model as essential for safety, the Swiftcrypt case could fuel ongoing debates about whether Apple should be held liable for fraudulent activity occurring through its ecosystem.
Apple has yet to comment publicly on the lawsuit. However, the outcome may carry broader implications for how platform owners, particularly those who exert strict control over their app marketplaces, are held accountable when things go wrong.
As digital investment tools and crypto platforms continue to proliferate, users and regulators alike are calling for greater transparency and accountability from tech gatekeepers. For Apple, the Swiftcrypt scandal may prove a difficult test of its promises of safety and the cost of trust in a digital marketplace.
