Users lose $9.5M to fake Ledger wallet app on the Apple App Store (web3isgoinggreat.com)

by CharlesW 47 comments 71 points
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47 comments

[−] post_break 29d ago
Thankfully the App Store doesn't allow side loading, because it completely stops fraud like this. At least that's the number one reason why I keep getting told if we allow side loading this will happen.
[−] victorbjorklund 29d ago
Is there more scams of web3 in the App Store or on the open internet? Not defending Apple but kind of a strawman to claim they said it stops 100% of fraud and abuse. That’s like saying seatbelts don’t work because people still get hurt in car crashes.
[−] chocochunks 29d ago
The App Store is totally safe, so I don't need to think about what I download or do any due diligence!
[−] tim333 29d ago
Apple are pretty bad for this and I don't think it's the first time it's happened. A lot of the problem is if you search for some app in the iOS app store the top result is a paid ad and the established app you want is the second result so people who don't know that click on the top one and lose their funds.

Also they should check the app but wallet security is tricky - you can put subtle vulnerabilities in that are hard to spot.

[−] nathanmills 29d ago
And don't you think its a strawman to compare only being and to install "" approved "" ($100/year for apple) software to a seatbelt? There is no use case for not wearing a seatbelt. That is not true for being able to install software.
[−] httgbgg 29d ago
Plenty of people disagree that there is no use case to not wearing a seatbelt. That you find it impossible to imagine makes it an even better analogy actually.
[−] array_key_first 29d ago
People can disagree with whatever, everyone is allowed to be stupid.

But most reasonable people agree there's no tangible use case to not wearing a seatbelt. There are infinite tangible use cases to using software outside the app store, that reasonable people can all acknowledge.

[−] idle_zealot 29d ago
Eh, kinda a weak argument. Too easy to counter with "but sideloading would let that happen more!" That might even be right, and a difference in amount is important. There will never be a totally secure system, after all.

I think the actual problem is with how the App Store changes the way people think about and relate to software. The fact is, running code on your computer is dangerous. You are trusting it with control over its operations. The responsible thing to do is provide platform-level safeguards (permissions systems, sandboxing) and engender a general understanding that you should only run an app vetted by someone you would hand your phone to.

This is fundamentally incompatible with software as a market, of course, so this path will never be taken.

[−] throw1234567891 29d ago
If they did, we’d be reading about such cases daily.
[−] tadfisher 29d ago
Source article: https://www.coindesk.com/business/2026/04/14/a-fake-ledger-a...

Choice quote:

> Blockchain investigator ZachXBT later traced the stolen 5.92 BTC [0], showing it was rapidly funneled through a series of transactions into KuCoin deposit addresses, consistent with a broader laundering pattern identified across the incident.

Ah, there's nothing else quite like a Seychelles-based cryptocurrency exchange which was booted from the US for facilitating money laundering. This is good for Bitcoin.

[0]: https://t.me/investigations/313#

[−] hnburnsy 29d ago
So certainly the DUNS, phone number, and physical address information will give up the perpetrators, thank goodness for Apple developer registration.
[−] pando85 18d ago
Apple takes 30% for 'review' that takes 2 days. They call it 'security'
[−] pixel_popping 29d ago
Entering your seed phrase with that much money on a phone is really non-sense :/
[−] basilikum 29d ago

> people entered their seed phrases into the app, then discovered their wallets were immediately drained.

Why did they cash out immediately? Wouldn't it be much smarter to send the seed phrase to a server and stay undetected for longer just collecting seed phrases until you sweep them all at once?

[−] alasano 29d ago
maybe they had a check to determine total value of all collected seeds and then triggered auto sweeps from a certain threshold to guarantee a minimum.

Not sure what the game theory optimal way of stealing is!

[−] basilikum 29d ago
That would make sense.

But perhaps they just made a transaction directly from the app to a hardcoded address. Not making any additional network requests might decrease the chance of being flagged by automated systems in the Appstore review process. Then again you could just disguise these requests as ordinary block chain connections.

I'm probably over thinking this and it was just a quick and dumb money grab.

[−] basilikum 29d ago
Game theory of cybercrime is way too interesting.
[−] cank 29d ago
a bird in the hand is worth much more than ten in the bush. The 'collect and sweep' strategy is extremely risky because seeds are perishable. You're racing against the app getting nuked and the users rotating keys.
[−] dude250711 29d ago
Unidirectional wall garden.
[−] hnburnsy 29d ago
Here is the archived App store page...

https://archive.ph/4RVLf

[−] 2OEH8eoCRo0 29d ago
Apple should be liable for this.

If Walmart sells a dangerous product, even unknowingly, they can be liable. Why are digital stores different?

[−] scotty79 29d ago
Apple should be on the hook for that. If you moderate, you are responsible for damage.
[−] Kate5477 26d ago
[dead]
[−] LunaSea 29d ago
I thought that Apple was reviewing each and every app which was the reason that justified them getting a silly 30% margin from all app revenues?
[−] throw1234567891 29d ago
[flagged]
[−] irl_zebra 29d ago
This should not have happened. But I have a hard time finding any sympathy for cryptocurrency folks. The quote from the article:

"I lost my retirement fund in a hack/Scam when I switched my Ledger over to my new computer and by accident downloaded a malicious ledger app from the Apple store. All my BTC gone in an instant."

Leaves me really shaking my head. If someone has the knowledge to even buy bitcoin or cryptocurrency, I imagine they have enough knowledge to know how utterly crime-ridden and risky of a speculation it is. It's like if someone decides to put their retirement fund into buying bulk illegal drugs and then selling them at a massive markup. Pretty risky, potential high upside, but given they assessed and then accepted the risk, hard to feel bad when they get robbed of all their drugs and lose their retirement funds.

[−] tencentshill 29d ago
They only needed it to exist on the app store for a week before stealing millions with zero recourse. These wealthy crypto people need to stop being cheap and hire financial advisors. The only reason for not doing so is if it was gained illegally in the first place.