Fake app in App Store drains crypto wallets for months

For months, the makers of DeFiLlama, a well-known crypto data website, were unable to get a fake version of their app removed from the Apple App Store. Reports of trademark infringement and imitation were ignored. Only after the team itself had a test wallet drained and submitted that as evidence did Apple remove the app within a few days. The case raises questions about how Apple handles fraud reports.

In short:

• DeFiLlama reported a fake app to Apple for months without success, citing trademark infringement and imitation.
• Only after a documented theft via a test wallet did Apple respond, and the app was removed.
• The attackers are also said to have created fake apps that imitate other well-known crypto brands.

No response to reports for months

0xngmi, the founder of DeFiLlama, says on X that the team spent months trying to get the fake app taken offline. In doing so, the team pointed to trademark violations and the deliberate imitation of the real DeFiLlama app.

Apple did not take the reports seriously enough to intervene. The fake app simply remained available in the App Store, while users who downloaded the app and entered their seed phrase lost their crypto.

Evidence of theft spurs Apple into action

Ultimately, the DeFiLlama team decided to test the fake app themselves. They loaded a small amount of crypto onto a test wallet, downloaded the app and entered the seed phrase. As expected, the wallet was drained immediately.

With this concrete evidence in hand, they filed another report with Apple. This time, the app was removed within a few days. According to WuBlockchain, the attackers behind the fake app also created similar fraudulent applications that imitate other well-known crypto brands.

Broader concern about fake apps in the App Store

The situation shows that Apple’s current reporting system falls short when it comes to tackling crypto scams. Users who encounter a fake app through search results in the App Store can lose their entire crypto balance simply by entering their seed phrase.

The fact that the attackers have created multiple fake apps that imitate different crypto brands points to an organised approach. The advice for users is to always download apps via a project’s official website and never enter a seed phrase into an app that asks for one.