Apple is facing a class-action lawsuit from crypto investors over an application that allegedly allowed hackers to steal their coins.
According to a report from civil litigation media outlet Courthouse News Service, hackers used the tech giant’s app store to place a phishing application disguised as a crypto wallet called “Toast Plus” and lured users into installing a criminal portal onto their devices.
The app was meant to look like a version of popular crypto wallet Toast Wallet, but in fact, had no connection to it.
The suit – filed on behalf of Hadona Diep by Joshua Whitaker of Baltimore law firm Aldelphi Law – says that Apple is liable for the victims’ losses due to a failure to properly vet the application before putting it on the App Store.
“While the App Store does have terms and conditions, including limitations on liability, those terms and conditions are the product of adhesion, in that consumers have no other practical ability to access applications for the iPhones and iPads if they do not use the App Store; those terms and conditions are therefore not applicable to this case…Â
The fact that Toast Plus was not an actual application, but instead a medium for the commission of fraud, makes any existing contract using it as subject matter void.”
According to the report, Diep linked her private XRP key or seed phrase into Toast Plus only to find out later that all her crypto assets were gone.
Court documents show that on top of compensation, the plaintiffs also request that Apple be held back from allowing similar schemes from operating in their app store in the future.
“Plaintiff, therefore, requests that Defendant be enjoined and restrained from distributing such ‘phishing’ or ‘spoofing’ applications in the App Store, and that this Court retain jurisdiction over this matter to monitor compliance with such an order.”
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