Shin V Apple
Shin V Apple
22
23
24
25
           26
           27
28
1 Plaintiff Danyell Shin, on behalf of herself and all others similarly situated, hereby files her
2 complaint against Apple, Inc. (“Apple” or “Defendant”), and in support thereof states:
3 INTRODUCTION
4 1. Apple authorized and maintained malicious applications in its “App Store” that
5 allowed the theft of personal financial assets while representing that apps in its App Store had been
7 2. Apple has built a business model that depends not only on selling hardware such as
8 iPhones and iPads, but also on providing consumers with a curated selection of applications through
            9   the App Store. By maintaining exclusive control over the applications that may be downloaded on
           10   Apple devices, Apple has structured its ecosystem so that customers rely on Apple for the perceived
11 safety and reliability of the App Store. Apple has actively and extensively represented to consumers
12 that apps on the App Store are thoroughly vetted, trustworthy, and secure. Apple has actively
13 represented that its App Store apps which are used for cryptocurrency trading come from approved
16 to purchase Apple devices over competing brands. Apple’s campaign to promote the safety and
17 trustworthiness of its App Store directly contributes to increased sales of iPhones and other Apple
18 products, as consumers reasonably believe that Apple’s devices provide a safer and more secure
           19   user experience. Without this assurance of security, fewer consumers would be inclined to purchase
           20   Apple devices, as they might perceive other smartphones or tablets as equally secure or better suited
22 4. Apple’s assertions regarding the safety and legitimacy of App Store apps thus serve
23 a dual purpose: enhancing the appeal of Apple’s ecosystem while driving hardware sales. This is
24 not merely a platform for app distribution but a cornerstone of Apple’s competitive advantage in the
25 smartphone and tablet market. Consequently, Apple profits not only from app sales or in-app
           26   purchases but also from free apps because Apple profits significantly from the added value that this
           27   perceived security brings to its devices, making the continued representation of app safety integral
1 5. Plaintiff and Class members relied on Apple’s express representations and ongoing
2 and long-standing campaign of representing that its App Store is “a safe and trusted place” when
4 Plaintiff and Class members, these applications, including the Swiftcrypt app Plaintiff downloaded,
5 were “spoofing” programs created for the sole purpose of stealing fiat and cryptocurrency by
6 obtaining consumers’ account information and thereafter routing Class members’ assets to the
7 perpetrators’ personal accounts. Not knowing this, and relying on Apple’s express and longstanding
8 representations that apps from its App Store had been vetted and were safe and legally compliant,
            9   Plaintiff and Class members downloaded the app from the Apple App Store. Subsequently, after
           10   following instructions contained in the apps to deposit funds, and after what appeared to be
11 legitimate trades and growth of their funds, their accounts were frozen and all the money they
13 6. Apple’s affirmative representations and the general impression that it has cultivated
14 that apps from its App Store could be trusted and were safe and secure because of Apple’s rigorous
15 vetting and review process were false and misleading. As a result of Apple’s misrepresentations,
16 and its failure to take appropriate corrective or remedial action, Apple has caused Plaintiff and Class
17 members to download an app created solely for “pig butchering” schemes and hence to suffer
           19   Remedies Act (“CLRA”), Civil Code § 1750, et seq. and California’s Unfair Competition Law
           20   (“UCL”), Business and Professions Code § 17200, et seq.
21 7. By virtue of this class action, Plaintiff seeks to enjoin Apple’s unlawful practices and
22 to require that Apple to compensate Plaintiff and members of the Class for the losses they have
24
           25   1
                        “Pig butchering” is “named in reference to the practice of fattening a pig before slaughter. It
           26   is a type of confidence and investment fraud in which the victim is gradually lured into making
                increasing monetary contributions, generally in the form of cryptocurrency, to a seemingly sound
           27   investment before the scammer disappears with the contributed monies.” See Office of Inspector
                General, Pig Butchering Scams, FDICOIG, https://www.fdicoig.gov/pig-butchering-scams (last
           28
                accessed May 28, 2025).
                                                                 2
00226224                                           CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000           Document 1       Filed 06/12/25      Page 4 of 28
1 PARTIES
2 8. Plaintiff Danyell Shin is an individual, over 18 years of age, and a citizen of the State
4 9. Defendant Apple, Inc. is a California corporation with its principal place of business
7 10. Jurisdiction is proper under the Class Action Fairness Act of 2005, 28 U.S.C.
8 § 1332(d), because, on information and belief, the proposed Class consists of 100 or more members;
            9   many of the members are citizens of states that are diverse from the state of Defendant’s citizenship;
           10   and the amount in controversy exceeds $5,000,000, exclusive of costs and interest.
11 11. This Court may exercise personal jurisdiction over Apple, who has availed itself of
12 the jurisdiction of this Court through acts and omissions, including but not limited to, having its
13 principal place of business in this District, advertising its services in this District, selling products
14 and services to consumers in this District, and by otherwise conducting business in this District;
15 furthermore, various agreements between Apple and the Class select the Courts of this State as the
17 12. Venue is therefore proper in this forum pursuant to 28 U.S.C. § 1391(b), and further,
18 as Apple is located in this judicial district and/or a substantial part of the acts or omissions giving
21 13. Pursuant to Civil L.R. 3-2(c) and (e), assignment to the San Jose Division is proper
22 because a substantial part of the conduct which gives rise to Plaintiff’s claims occurred in Santa
24 GENERAL ALLEGATIONS
           26          14.     Apple is one of the largest mobile and tablet application providers in the world,
           27   through its universally known “App Store.”
           28
                                                                    3
00226224                                            CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1         Filed 06/12/25    Page 5 of 28
            9
           10
11
12
13
           14          16.     Apple has worked for decades to build and promote a reputation of providing apps
           15   that are safe and can be trusted. Over time, Apple has established an image that its App Store is
           16   carefully curated, with each app undergoing a rigorous review to ensure it meets Apple’s security
           17   standards. This long-standing marketing message has fostered an inherent belief among consumers
           18   that apps on the App Store are safe by default.
           19          17.     Apple has distinguished itself in the tech industry as a company committed to user
           20   privacy and security. Consumers have come to associate Apple products with high standards of
           21   protection, further encouraging the reasonable belief that any app available on the App Store is
           22   secure and free from fraudulent intent. This association reinforces reasonable consumers’ belief that
           23   Apple’s vetting process extends to protecting them from scams.
           24          18.     Apple exercises exclusive control over app distribution on iOS devices, disallowing
           25   alternative app sources or sideloading. This exclusivity suggests to consumers that Apple is
           26   confident in its review and vetting process, leading users to believe that Apple has effectively
           27
           28   2
                       App Store, Apple, https://www.apple.com/app-store/ (last accessed May 28, 2025).
                                                              4
00226224                                          CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000          Document 1       Filed 06/12/25       Page 6 of 28
1 shielded them from unsafe or fraudulent applications by eliminating external sources of apps.
2 Indeed, Apple warns users that sideloading “would cripple the privacy and security protections that
3 have made iPhone so secure, and expose users to serious security risks,”3 reinforcing consumers’
4 belief that Apple-approved apps on the App Store are safe and trustworthy.
5 19. Apple has promoted its App Store’s vetting process as a stringent security measure,
6 publicly detailing how apps are reviewed by experts who assess them for malware, privacy concerns,
7 and other security risks. Apple also promotes and represents that its App Store apps which are used
8 for cryptocurrency transmissions or transactions are appropriately licensed and that apps facilitating
            9   cryptocurrency ICOs (Initial Coin Offerings) or other futures trading of cryptocurrency come from
           10   approved financial institutions and comply with all applicable laws. Given this promotion, a
11 reasonable consumer would assume that apps made available for download are free from fraudulent
12 or malicious intent, especially for highly regulated fields like finance and digital asset trading.
13 20. Apple has conveyed to consumers that user safety is a core value, underscored by
14 statements such as “Download with confidence” and assurances that the App Store is a “safe and
15 trusted place.” Given the prevalence of these messages, consumers are led to believe that Apple’s
16 security and vetting practices are specifically designed to prevent fraudulent schemes like pig
18 21. In 2007, Steve Jobs stated that Apple’s mission in creating what would become the
           19   App Store was to create “an advanced system which will offer developers broad access to natively
           20   program the iPhone’s amazing software platform while at the same time protecting users from
21 malicious programs.”4 Apple reiterated its approach to the App Store in 2010 when it released the
22 first version of its App Store Review Guidelines, in which it stated “[i]f it sounds like we’re control
23
24
           25   3
                         Building a Trusted Ecosystem for Millions of Apps: A Threat Analysis of Sideloading, Apple
           26   (Oct. 2021),
                https://www.apple.com/privacy/docs/Building_a_Trusted_Ecosystem_for_Millions_of_Apps_A_
           27   Threat_Analysis_of_Sideloading.pdf.
                4
                         Adam Engst, Steve Jobs’s iPhone SDK Letter, TidBits (Oct. 17, 2007),
           28
                https://tidbits.com/2007/10/17/steve-jobss-iphone-sdk-letter/.
                                                                  5
00226224                                           CLASS ACTION COMPLAINT
                      Case 5:25-cv-05000       Document 1       Filed 06/12/25      Page 7 of 28
1 freaks, well, maybe it’s because we’re so committed to our users and making sure they have a quality
3 22. In 2021, Apple published a document titled “Building a Trusted Ecosystem for
4 Millions of Apps: The important role of App Store protections” in which it claims:
            5           Nearly two million apps are available for users to download on the App Store, with
                        thousands of apps added every week. Given the sheer scale of the App Store platform,
            6           ensuring iPhone security and safety was of critical importance to us from the start. .
                        . . [W]e created the App Store, a trusted place where users can safely discover and
            7
                        download apps. On the App Store, apps come from known developers who have
            8           agreed to follow our guidelines, and are securely distributed to users free from
                        interference from third parties. We review every single app and each app update to
            9           evaluate whether they meet our high standards. This process, which we are constantly
                        working to improve, is designed to protect our users by keeping malware,
           10           cybercriminals, and scammers out of the App Store.6
           11           23.    Apple represents that “[s]ince launching the App Store in 2008, Apple has continued
           12   to invest in and develop industry-leading technologies designed to provide users with the safest and
           13   most secure experience for downloading apps . . . Today, the App Store stands at the forefront of
           14   app distribution, setting the standard for security, reliability, and user experience.”7 It also tells
           15   consumers that “[a]s digital threats have evolved in scope and complexity over the years, Apple has
           16   expanded its antifraud initiatives to address these challenges and help protect its users. Every day,
           17   teams across Apple monitor and investigate fraudulent activity on the App Store, and utilize
           18   sophisticated tools and technologies to weed out bad actors and help strengthen the App Store
           19   ecosystem.”8
           20   ///
           21   ///
           22
           23   5
                        See Leander Kahney, Here’s The Full Text of Apple’s New App Store Guidelines, Cult of
                Mac (Sept. 9, 2010 8:49 AM), https://www.cultofmac.com/news/heres-the-full-text-of-apples-new-
           24   app-store-guidelines.
                6
           25           Building a Trusted Ecosystem for Millions of Apps: The important role of App Store
                protections, Apple (June, 2021),
           26   https://www.apple.com/privacy/docs/Building_a_Trusted_Ecosystem_for_Millions_of_Apps.pdf.
                7
                        App Store stopped over $7 billion in potentially fraudulent transactions in four years, Apple
           27   (May 14, 2024), https://www.apple.com/newsroom/2024/05/app-store-stopped-over-7-billion-usd-
                in-potentially-fraudulent-transactions/.
           28   8
                        Id.
                                                                  6
00226224                                           CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1       Filed 06/12/25      Page 8 of 28
1 24. In 2025, Apple again reiterated “the App Store’s continued investment in fostering
2 the most secure experience for users,” and that “the App Store is a trusted destination for users to
3 download their favorite apps and discover new ones.”9 Apple represented to consumers that it
4 “employs a comprehensive approach to combating fraud on the App Store, with teams across the
5 company working to detect, investigate, and prevent malicious activity before it can reach users.”10
6 Apple assures its users it “will continue to build on its commitment to provide users with the safest
            9          Apple provides layers of protection to help ensure that apps are free of known
                       malware and haven’t been tampered with. Additional protections enforce that access
           10          from apps to user data is carefully mediated. These security controls provide a stable,
                       secure platform for apps, enabling thousands of developers to deliver hundreds of
           11
                       thousands of apps for iOS, iPadOS, and macOS—all without impacting system
           12          integrity. And users can access these apps on their Apple devices without undue fear
                       of viruses, malware, or unauthorized attacks.12
           13
14
15
16
17
18
           19
           20
21
22
23
           24
                9
           25          The App Store prevented more than $9 billion in fraudulent transactions over the last five
                years, Apple (May 25, 2025), https://www.apple.com/newsroom/2025/05/the-app-store-prevented-
           26   more-than-9-billion-usd-in-fraudulent-transactions/.
                10
                       Id.
           27   11
                       Id.
                12
                       App security overview, Apple, https://support.apple.com/guide/security/app-security-
           28
                overview-sec35dd877d0/web (last accessed May 28, 2025).
                                                                 7
00226224                                          CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000        Document 1      Filed 06/12/25   Page 9 of 28
            9
           10
11
12
13
           14
                Apple additionally promises it is:14
           15
16
17
18
           19
           20
21
22
23
24
25
           26
           27
                13
                       See App Store, supra n.2.
           28   14
                       Id.
                                                                 8
00226224                                           CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000      Document 1       Filed 06/12/25      Page 10 of 28
            9
           10
11
12
13
14
15
16
17
18 27. Apple represents consumers can “Download with confidence.” It asserts that on its
           19   apps, Apple customers can “Purchase safely and securely.” And “Need a refund? AppleCare has
           20   your back.”
           22          The App Store is a trusted place where users can safely discover and download apps.
                       On the App Store, apps come from identified developers who have agreed to follow
           23          Apple guidelines, and are securely distributed to users with cryptographic guarantees
                       against modification. Every single app and each app update is reviewed to evaluate
           24
                       whether it meets requirements for privacy, security and safety. This process, which
           25          is being constantly improved, is designed to protect users by keeping malware,
                       cybercriminals and scammers out of the App Store.15
           26
           27
                15
                       About App Store security, Apple (Dec. 19, 2024), https://support.apple.com/en-
           28
                euro/guide/security/secb8f887a15/web.
                                                        9
00226224                                         CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000       Document 1        Filed 06/12/25     Page 11 of 28
1 29. Apple further states, “Unlike other mobile platforms, iOS, iPadOS and visionOS
2 don’t allow users to install potentially malicious unsigned apps from websites or to run untrusted
3 apps. Instead . . . all apps must be downloaded from the App Store, where all apps come from
5 30. Apple controls what applications may be sold or provided to consumers through the
6 App Store by a vetting process that involves provision of the proposed application’s purpose and a
7 copy of the application itself and any relevant source code, users’ guides, and software
8 documentation.17
            9          31.     As part of Apple’s promise that apps from its App Store are vetted for safety and
           10   security, it promises that each app on the App Store has met its security standards. The promise that
11 apps on the App Store are rigorously vetted fosters and results in consumer trust of Apple apps. And
12 in Apple’s words: “Customer trust is a cornerstone of the App ecosystem. Apps should never prey
13 on users or attempt to rip off customers . . .”18 According to Apple, “[t]he guiding principle of the
14 App Store is simple—we want to provide a safe experience for users to get apps . . .”19
15 32. According to Apple, it achieves its guiding principle of providing customer safety
16 and establishing a cornerstone of consumer trust in its apps and the App Store, “by offering a highly
17 curated App Store where every app is reviewed by experts . . . We also scan each app for malware
18 and other software that may impact user safety, security, and privacy. These efforts have made
           19   Apple’s platforms the safest for consumers around the world.”20 Apple also promises “apps that
           20   solicit, promote, or encourage criminal or clearly reckless behavior will be rejected.”21
21 33. Apple has specific security standards for cryptocurrency exchange apps as follows:22
22
           23
                16
                         Intro to app security for iOS, iPadOS and visionOS, Apple (Dec. 19, 2024),
           24   https://support.apple.com/en-euro/guide/security/secf49cad4db/web.
                17
           25            See, e.g., App Review Guidelines, Apple Developer, https://developer.apple.com/app-
                store/review/guidelines (last accessed May 28, 2025).
                18
           26            Id.
                19
                         Id.
           27   20
                         Id.
                21
                         Id.
           28   22
                         Id.
                                                                10
00226224                                           CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000      Document 1        Filed 06/12/25      Page 12 of 28
1 3.1.5 Cryptocurrencies:
2 ...
            6                 (iv) Initial Coin Offerings: Apps facilitating Initial Coin Offerings (“ICOs”),
                              cryptocurrency futures trading, and other crypto-securities or quasi-securities
            7                 trading must come from established banks, securities firms, futures
                              commission merchants (“FCM”), or other approved financial institutions and
            8                 must comply with all applicable law.
            9                 (v) Cryptocurrency apps may not offer currency for completing tasks, such as
           10                 downloading other apps, encouraging other users to download, posting to
                              social networks, etc.
           11
                       34.    Defendant represents that as part of its vetting and review process:23
           12
                              Apps that provide services in highly regulated fields (such as banking and
           13                 financial services, healthcare, gambling, legal cannabis use, and air travel) or
                              that require sensitive user information should be submitted by a legal entity
           14                 that provides the services, and not by an individual developer.
           15
                       35.    Apple also promises immediate correction if issues occur. Apple represents:
           16
                              In a case where an app makes it into the App Store but is then later discovered
           17                 to violate guidelines, Apple works with the developer to quickly resolve the
                              issue. In dangerous cases, involving fraud and malicious activity, the app is
           18                 immediately removed from the App Store and users who downloaded the app
                              can be notified of the app’s malicious behavior. 24
           19
           20          36.    Apple makes clear to users that the “goal of App Review is to ensure that apps on
           21   the App Store are trustworthy.”25 It also promises “Apple’s many layers of security provide users
           22   with an unparalleled level of protection from malicious software, giving users peace of mind.”26
           23
24
25
           26
                23
                       Id.
           27   24
                       Supra n.12.
                25
                       Supra n.6.
           28   26
                       Id.
                                                                11
00226224                                          CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000       Document 1        Filed 06/12/25      Page 13 of 28
1 37. Apple’s representations of safety and security in the applications offered in the App
2 Store have been made continuously for almost two decades and were a focal point of widespread
4 38. Apple has successfully cultivated the impression that its products and the apps it vets
5 and makes available in the App Store are safe and trustworthy. Indeed, consumers “are willing to
6 trust apps they download from app stores because of years of positive experiences with the extra
7 scrutiny and safeguards app stores offer. Simply being available on the app stores is now an indicator
            9          39.     As described in an article published on February 1, 2023, about illicit pig butchering
           10   apps making their way into the Apple App Store, the “presence of the apps in the App Store made
11 the ruse all the more convincing.”28 Researchers from the cybersecurity firm SophosLabs also
12 published an article about pig butchering apps being available in the App Store, stressing that “If
13 criminals can get past these checks [Apple purports to conduct], they have the potential to reach
14 millions of devices. This is what makes it more dangerous for [scam app] victims, as most of those
15 targets are more likely to trust the source if it comes from the official Apple App Store.”29
16 40. Apple’s business model and sales of iPhones and iPads depends upon the App Store
18
           19
           20   27
                        The App Association, Security and Trust from an App Maker’s Point of View, ACT online
           21   (Nov. 2021), https://actonline.org/wp-content/uploads/App-Association-Security-and-Trust-from-
                an-App-Makers-Point-of-View-November-2021.pdf.
           22   28
                        Dan Goodman, Pig-butchering scam apps sneak into Apple’s App Store and Google Play,
                arstechnica (Feb. 1, 2023), https://arstechnica.com/information-technology/2023/02/pig-
           23   butchering-scam-apps-sneak-into-apples-app-store-and-google-play/ (last accessed May 28, 2025).
                29
                        Jagadeesh Chandraiah, Fraudulent ‘CryptoRom’ trading apps sneak into Apple and Google
           24   app store, Sophos News (Feb. 1, 2023), https://news.sophos.com/en-us/2023/02/01/fraudulent-
           25   cryptorom-trading-apps-sneak-into-apple-and-google-app-stores/ (last accessed May 28, 2025).
                30
                        See, e.g., Michael Gartenberg, Apple’s App store has become an ad-infested imitation of its
           26   former self, which is not good for iPhone users or developers, Bus. Insider (No. 28, 2022 1:48 PM),
                https://www.businessinsider.com/apples-app-store-has-become-an-ad-plagued-version-of-its-
           27   former-self-2022-11 (“Ask just about any Apple executive what makes Apple special and the answer
                will almost always be Apple’s ecosystem — the company’s . . . position of creating both the
           28
                hardware and the software with tight integration.”).
                                                                 12
00226224                                           CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000        Document 1       Filed 06/12/25      Page 14 of 28
1 41. That is because Apple customers have no other practical or convenient manner in
2 which to download applications for their iPhones or iPads, as Apple maintains rigorous control over
3 applications that can be placed on their devices. If App Store applications are not perceived to be
5 42. Even when Apple does not directly profit from an application downloaded from the
6 App Store, drawing consumers to its selling forum, as opposed to other fora, has considerable
7 business advantage to Apple, as it encourages consumers to purchase Apple products and dissuades
8 consumers from purchasing other devices. The App Store’s perception of trust and safety has “been
11 consumers, including that apps on the App Store are highly vetted and safe for users to download
12 and use.32 “The more consumers trust a brand, the more they use that brand. . . . Apple’s huge
13 installed base of trusting users has tremendous value, driving a high level of spend with the brand.”33
14 44. Because Plaintiff knew, or at least thought she knew, that Apple thoroughly reviews
15 applications before it allowed them on the App Store, and in reliance on Apple’s representations
16 that App Store apps are safe and secure, Plaintiff purchased Apple hardware (i.e., an iPhone) and
17 downloaded the Swiftcrypt app from the App Store, which turned out to be a fraudulent application.
18 45. The fraudsters that perpetrated the fraud against Plaintiff and Class members through
           19   the App Store did so specifically because the app being in the App Store would lend credibility to
           20   the scheme. The fraudsters knew that Apple advertises the App Store as being a safe and trustworthy
21 platform, and they used those representations to their advantage in order to carry out the fraud.
22
23
           24   31
                        See Juliette Caminade & Jonathan Borck, The Continued Growth and Resilience of Apple’s
           25   App Store Ecosystem, Apple (May, 2023), https://www.apple.com/newsroom/pdfs/the-continued-
                growth-and-resilience-of-apples-app-store-ecosystem.pdf.
           26   32
                        See id. (“Apple has heavily invested in the development of policies to foster user trust
                and the deployment of resources to enforce them.”).
           27   33
                        David Myhrer, How Brand Trust and a Strong Product Portfolio Drives Apple’s Success,
                IDC (Feb. 12, 201), https://blogs.idc.com/2021/02/12/how-brand-trust-and-a-strong-product-
           28
                portfolio-drives-apples-success/.
                                                                  13
00226224                                           CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000        Document 1        Filed 06/12/25      Page 15 of 28
2 46. With Apple’s representations in mind, Plaintiff downloaded the Swiftcrypt app,
3 reasonably trusting that the app would be safe, legitimate, and suitable for conducting secure
4 financial transactions. Instead, Plaintiff was met with digital asset fraud, finding herself a victim of
6 47. Fraudsters can carry out these digital asset frauds in different ways. One common
8 ‘mining’ farms. The fraudsters promise high guaranteed returns (for example, 20-50%) with little
            9   or no risk.”34
           10           48.      Fraudsters can create fake “trading” platforms in which they convince persons to
11 deposit money in what they believed was their own account under their control, often starting with
12 small amounts and building up to higher and higher numbers, promising the users that they are
13 trading their money and achieving high returns.35 In reality, “no trading actually [takes] place.”36
14 Any money deposited into the platform is stolen by the scammers. “When [victims] try to withdraw
15 [their] earnings, suddenly there [is a] problem[],” or they are told they must pay out-of-pocket to
17 49. These cryptocurrency scams are extremely prevalent. The FBI recently reported that
18 the total amount of money lost in these frauds in 2023 was over $5.6 billion.38 Investment scams,
           19
           20
21
           22   34
                        Investor Alert: Watch Out for Fraudulent Digital Asset and “Crypto” Trading Websites,
                Commodity Futures Trading Commission,
           23   https://www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/watch_out_for_digital_fraud.html#
                :~:text=Be%20wary%20of%20anyone%20who,that%20is%20difficult%20to%20understand. (last
           24   accessed May 28, 2025).
                35
           25           See    Digital    Asset    Frauds,    Commodity       Futures   Trading    Commission,
                https://www.cftc.gov/LearnAndProtect/digitalassetfrauds (last accessed May 28, 2025).
                36
           26           Id.
                37
                        Id.
           27   38
                        Hannah Lang, Losses from Crypto Scams Grew 45% in 2023, FBI Says, Reuters (Sept. 9,
                2024 3:16pm CDT), https://www.reuters.com/technology/losses-crypto-scams-grew-45-2023-fbi-
           28
                says-2024-09-09/.
                                                               14
00226224                                           CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000       Document 1        Filed 06/12/25      Page 16 of 28
1 such as the ones discussed above and at issue here, “accounted for 71% of all crypto-related losses”
2 in 2023.39 The U.S. Secret Service has warned that these types of frauds are of “national interest.”40
3 50. Sophisticated digital actors, such as Apple, are well aware of the threat of these
4 schemes. Apple knew, or should have known, that these types of frauds exist and should have
5 protected Plaintiff and Class members against these types of frauds. Despite representations that
6 Apple takes App Store security seriously, that its customers can trust what is available in the App
7 Store, and that App Store apps used to trade cryptocurrency meet all relevant legal requirements,
8 Apple allowed these fraudsters to place their apps for download in the App Store and caused great
11 51. In or about September, 2024, Plaintiff joined an online investment discussion group
12 whose purported objective was to share stock recommendations, investment strategies, and to
13 leverage the combined investment resources of the group. Plaintiff had been educating herself by
14 various means regarding stock investments and trading of digital assets and the online discussion
15 group was part of this process. At the behest of the group leader, an individual using the name Daniel
16 Mills, who was a claimed financial expert with a pedigreed employment history, the Mills discussion
17 group expanded into trading cryptocurrency. Plaintiff and the other group members were
18 encouraged to download and join an app called Swiftcrypt from either the App Store or the Google
           19   Play Store and utilize the $100 to $2,000 provided by the exchange to start “trading.”
           20          52.     Plaintiff has used Apple products for at least 15 years. She trusted apps from the App
21 Store because of her experience with Apple products, her experience with downloading and using
22 other apps from the App Store, and the overall impression Apple has cultivated among its
23 customers—that apps on the App Store are vetted, safe, and trustworthy. This confidence arose from
24 Apple’s long-standing commitment to marketing the App Store as a secure platform, where all apps
25 meet rigorous safety standards. She was also assured by Apple’s representations on its App Store
           26
           27   39
                        Id.
                40
                        Combating the Illicit Use of Digital Assets, United States Secret                    Service,
           28
                https://www.secretservice.gov/investigations/digitalassets (last accessed May 28, 2025).
                                                                15
00226224                                           CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000          Document 1       Filed 06/12/25      Page 17 of 28
1 that its apps could be trusted and were secure and safe as alleged above. In reliance on this
2 impression Apple has cultivated over time that apps on the App Store are vetted, safe, and
3 trustworthy, including Apple’s representations regarding the safety and security of App Store apps
4 and based on her belief that the Swiftcrypt app downloaded from Defendant’s App Store was safe
5 and secure, Plaintiff downloaded Swiftcrypt onto her iPhone 13 Pro Max in or about September,
6 2024.
8 representations she relied on concern the safety and security of apps from the App Store—the
            9   “guiding principle” of the App Store according to Apple—and Plaintiff relied upon Apple’s
           10   representations for these purposes. Plaintiff would not have purchased an iPhone or spent as much
11 on her iPhone if she had known the truth about Apple’s representations that its apps were not safe
12 or trustworthy.
13 54. After relying on Apple’s representations about the safety and vetting of apps in the
14 App Store and downloading the Swiftcrypt app, Plaintiff began transferring money into what she
15 believed was her account and buying and trading in cryptocurrency and Initial Coin Offerings
16 (ICOs). Between September, 2024, and mid-January, 2025, Plaintiff transferred approximately
17 $80,000 into the Swiftcrypt app, including approximately $50,000 obtained through a loan from her
18 husband’s 401k account. By mid-January, 2025, Plaintiff’s Swiftcrypt account appeared to have
           19   increased to $421,000.
           20           55.       On or about January 14, 2025, Plaintiff’s Swiftcrypt account was suddenly locked
21 and her assets in her account frozen. A few days later, the Swiftcrypt app became non-functional
22 and non-responsive. Plaintiff later discovered the Swiftcrypt app was not legitimate or in compliance
23 with legal requirements, contrary to Apple’s representations, it was not safe and could not be trusted,
24 and it did not comport with Apple’s represented standards and vetting processes for a cryptocurrency
25 app. The Swiftcrypt app was part of a “pig butchering” scam and the more than $80,000 that Plaintiff
           26   had deposited was gone. As a direct result of Apple’s process for reviewing the Swiftcrypt app on
           27   its App Store and Plaintiff’s reasonable reliance on Apple’s representations assuring her the app had
           28   been vetted, was safe, and could be trusted, Plaintiff was injured and lost approximately $80,000.
                                                                   16
00226224                                             CLASS ACTION COMPLAINT
                   Case 5:25-cv-05000           Document 1        Filed 06/12/25      Page 18 of 28
1 Contrary to Apple’s representations and stated processes for correction, Plaintiff and other users of
2 Swiftcrypt were never notified by Apple that Swiftcrypt was a dangerous app used for fraud and
3 malicious activity. Because of the false and deceptive material misrepresentations at issue, Plaintiff
6 56. Plaintiff brings this action on behalf of herself and as a class action, pursuant to the
7 provisions of Federal Rules of Civil Procedure Rules 23(a), (b)(2), and (b)(3), on behalf of the class
8 defined as:
            9                                                  The Class
           10                 All persons who downloaded a cryptocurrency trading app from the Apple
                              App Store within the relevant statutory period to the date notice is sent to
           11
                              the Class and whose funds were stolen from the cryptocurrency app by the
           12                 app developers or agents working on their behalf.
           13          57.       Excluded from the Class are Defendant and its subsidiaries and related entities; all
           14   persons who make a timely election to be excluded from the Class; governmental entities; and any
           15   judge to whom this case is assigned and his/her immediate family. Plaintiff reserves the right to
           16   revise the Class definition based upon information learned through discovery.
           17          58.       Certification of Plaintiff’s claims for class-wide treatment is appropriate because
           18   Plaintiff can prove the elements of her claims on a class-wide basis using the same evidence as
           19   would be used to prove those elements in individual actions alleging the same claim.
           20          59.       This action has been brought and may be properly maintained on behalf of the Class
           21   proposed herein under Federal Rule of Civil Procedure 23 for the following reasons:
           22                                                 Numerosity
           23          60.       Pursuant to Federal Rule of Civil Procedure 23(a)(1), the members of the Class are
           24   so numerous and geographically dispersed that individual joinder of all Class members is
           25   impracticable. While Plaintiff is informed and believes that there are hundreds of members of the
           26   Class, the precise number of Class members is unknown to Plaintiff but may be ascertained from
           27   Defendant’s records. Class members may effectively and efficiently be notified of the pendency of
           28
                                                                    17
00226224                                             CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1       Filed 06/12/25      Page 19 of 28
1 this action by recognized, Court-approved dissemination methods, which may include U.S. mail,
4 61. Pursuant to Federal Rule of Civil Procedure 23(a)(2) and 23(b)(3), this action
5 involves common questions of law and fact, which predominate over any questions affecting
            9   protection laws;
           10                  c.      Whether Plaintiff and the other Class members are entitled to damages,
13 regarding the safety of App Store apps, and the form thereof.
14 Typicality
15 62. Plaintiff’s claims are typical of the other Class members’ claims because, among
16 other things, all Class members were injured through Defendant’s wrongful conduct as described
17 above.
18 Adequacy
           19            63.   Plaintiff is an adequate Class representative because her interests do not conflict with
           20   the interests of the other members of the Class she seeks to represent; Plaintiff has retained
21 experienced counsel competent in complex multi-party and class action litigation, and Plaintiff
22 intends to prosecute this action vigorously. The Class’s interests will be fairly and adequately
24 Superiority
25 64. Class action litigation is superior to any other available means for the fair and
           26   efficient adjudication of this controversy, and no unusual difficulties are likely to be encountered in
           27   the management of this action as a class action. The damages suffered by Plaintiff and the other
           28   Class members are relatively small compared to the burden and expense that would be required to
                                                                  18
00226224                                           CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1        Filed 06/12/25     Page 20 of 28
1 individually litigate their claims against Apple, so it would be impracticable for members of the
2 proposed Class to individually seek redress from the courts. Even if the individual Class members
3 could afford to undertake individual litigation, such individual claims would unnecessarily burden
4 the court system should they do so. Furthermore, individual litigation creates potential for
5 inconsistent or contradictory orders and judgments and increases delay and expense to the parties
6 and to the court system. A class action would present fewer administrative difficulties, would be
7 more efficient, and would enhance the interests of consistent and fair justice in this matter.
8 65. In the alternative, the Class also may be certified because Defendant has acted or
            9   refused to act on grounds generally applicable to the Class thereby making final declaratory and/or
           10   injunctive relief with respect to the members of the Class as a whole, appropriate.
11 66. Plaintiff seeks preliminary and permanent injunctive and equitable relief on behalf
12 of the Class, on grounds generally applicable to the Class, to enjoin and prevent Defendant from
13 engaging in the acts described, and to require Defendant to provide relief to Plaintiff and Class
14 members.
15 67. Unless the Class is certified, Defendant will retain monies that were taken from
16 Plaintiff and Class members as a result of Defendant’s wrongful conduct. Unless a classwide
17 injunction is issued, Defendant will continue to commit the violations alleged and the members of
           19                                                 COUNT I
           20                               Violations of the Unfair Competition Law,
                                             Cal. Bus. & Prof. Code § 17200, et seq.
           21
22 68. Plaintiff repeats and incorporates herein by reference the allegations in the preceding
24 69. Plaintiff and Defendant are “persons” within the meaning of the UCL. Cal. Bus. &
           26          70.     The UCL defines unfair competition to include any “unlawful, unfair, or fraudulent
           27   business act or practice.” Cal. Bus. & Prof Code § 17200.
           28
                                                                   19
00226224                                            CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1        Filed 06/12/25      Page 21 of 28
1 71. As a result of engaging in the conduct alleged in this Complaint, Defendant has
2 violated the UCL’s proscription against engaging in “unlawful” conduct by virtue of its violations
3 of California’s Consumers Legal Remedies Act, Civil Code § 1750, violation of Civil Code §§ 1572,
4 1573, 1709, 1711, 1770(a)(5), (7), (9) and the common law. Plaintiff reserves the right to allege
5 other violations of law which constitute unlawful business acts or practices under the UCL.
6 72. As a result of engaging in the conduct alleged in this Complaint, Defendant has also
7 violated the UCL prohibition against unfair business acts or practices. Defendant’s unfair conduct
            9   to consumers because consumers have lost substantial amounts of money using App Store apps that
           10   were not legitimate, vetted, or safe as represented by Apple. There is no utility or legitimate business
11 purpose for Apple’s conduct in that Apple by its express representations and long-term campaign
12 promises that apps from its App Store are legitimate, safe, and secure and can be downloaded with
13 confidence because of Apple’s vetting process and security standards. However, because Apple has
14 prioritized profit over ethics, Apple fails to adequately vet predatory, potentially devastating “pig
15 butchering” cryptocurrency scam apps and makes them available to download despite its continuing
16 misrepresentations that the apps in its App Store are vetted, safe and trustworthy.
17 73. Apple’s unfair conduct also undermines public policies aimed at protecting
18 consumers from harm, especially in digital marketplaces. California, in particular, has a strong
           19   public policy in favor of safeguarding consumers against deceptive practices and ensuring that
           20   products and services available to the public do not pose undue risk of fraud or financial loss. Public
21 policy encourages protecting citizens from financial scams and fraudulent schemes, particularly in
22 digital markets where consumers are more vulnerable. By allowing fraudulent apps that facilitate
23 “pig butchering” scams, Apple’s conduct violates public policy aimed at preventing fraud and
24 financial exploitation. Public policies also generally uphold the importance of transparency and
25 truthfulness in advertising, especially when companies make safety and security claims. Apple’s
           26   representations of App Store safety create a misleading sense of security, and violate policies against
           27   false advertising. There is also a public policy interest in maintaining high standards of digital
           28   security and privacy for consumers. Particularly given its representations to the contrary, Apple’s
                                                                   20
00226224                                           CLASS ACTION COMPLAINT
                   Case 5:25-cv-05000         Document 1       Filed 06/12/25      Page 22 of 28
1 failure to vet fraudulent cryptocurrency trading apps contravenes public policies intended to ensure
2 that digital services, especially those related to finance, do not expose users to unnecessary risk.
3 Public policy supports the principle that companies with substantial market control have a duty to
4 protect users from known risks, especially where users cannot avoid these risks themselves. Apple’s
5 exclusive control over iOS app distribution heightens its duty to protect consumers, and its failure
7 markets.
8 74. Defendant’s business practices are also unfair within the meaning of the UCL
            9   because the injury to Plaintiff and the Class is not outweighed by any countervailing benefits to
           10   consumers or competition, and the injury could not reasonably be avoided by Plaintiff and the Class
11 members. There were reasonable available alternatives to further Defendant’s legitimate business
13 75. As a result of engaging in the conduct alleged in this Complaint, Defendant has also
14 violated the UCL prohibition against fraudulent business acts or practices by representing that apps
15 from its App Store are legitimate, safe, and secure and can be downloaded with confidence because
16 of Apple’s vetting process and security standards. Defendant’s conduct as set forth fully above was
17 false, misleading, and/or likely to deceive a reasonable consumer. A reasonable consumer would be
           19   legitimacy, safety, and security of App Store apps are material to consumers’ decision to purchase
           20   Apple hardware devices (iPhones and iPads) and download and use App Store apps for financial
21 transactions and related purposes. Plaintiff and other Class members have in fact been deceived as
23 76. Plaintiff has suffered injury in fact and lost money or property as a result of
24 Defendant’s unlawful, unfair, and fraudulent business acts and practices alleged herein. Because of
25 the unfair business practices at issue, Plaintiff and members of the Class have suffered an injury in
           26   fact and have lost money and property, including, but not limited to, the expected utility and
           27   performance of their Apple iPhones and iPads, the purchase price of their Apple devices, and/or the
           28   difference between the price Class members paid and the actual worth of the hardware product had
                                                                 21
00226224                                          CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1        Filed 06/12/25     Page 23 of 28
1 Apple disclosed the true nature of the representations at issue. As a result of Defendant’s misconduct
2 and representations, Plaintiff also invested and lost thousands of dollars in a scam app she acquired
4 77. Apple’s conduct in violation of the UCL is ongoing and continuing to this date. The
5 unlawful, unfair, and fraudulent business acts and practices of Defendant described herein present
6 a continuing threat in that Apple is currently engaging in such acts and practices, and will persist
7 and continue to do so unless and until an injunction is issued by this Court. Plaintiff intends to
8 continue to purchase App Store apps in the future if they are secure and comport with Apple’s claims
            9   regarding its standards, vetting, and review. Because Plaintiff owns Apple iPhones and/or iPads,
           10   and the ability to download and use apps is integral to the core functionality of the Apple devices
11 she owns, she has no reasonable, comparable alternatives except to download and use apps from
12 Apple’s App Store. Injunctive relief, in the form of corrective advertising, is necessary to dispel
13 public misperception about the safety and trustworthiness of apps in Apple’s App Store that has
14 resulted from years of Apple’s unlawful marketing efforts and to prevent current and future Apple
16 78. Plaintiff, on behalf of herself and the Class members, seeks restitution from
17 Defendant of all money and property lost by Plaintiff and the other members of the Class investing
18 through fraudulent cryptocurrency apps acquired through the App Store and by overpaying for their
           19   Apple hardware devices, an injunction prohibiting Defendant from continuing the unfair business
           20   practices, corrective advertising, and all other relief this Court deems appropriate, consistent with
22 COUNT II
25 79. Plaintiff repeats and incorporates herein by reference the allegations in the preceding
           28   App Store and applications available therein are goods or services that Apple has marketed and that
                                                                  22
00226224                                           CLASS ACTION COMPLAINT
                     Case 5:25-cv-05000       Document 1       Filed 06/12/25      Page 24 of 28
1 Plaintiff and Class members purchased or obtained for personal, family, or household purpose and,
2 as such, are “goods” and “services” as defined by Cal. Civil Code sections 1761(a), (b).
3 81. Plaintiff and Class members are individuals who purchased or leased and have used
4 one or more Apple devices (e.g., iPhones or iPads) for personal, family, or household purposes and,
5 as such, are “consumers” defined in Cal. Civil Code section 1761(d). Apple is a corporation and, as
6 such, is a “person” as that term is defined in Cal. Civ. Code section 1761(c).
7 82. Plaintiff and Class members purchased iPhones and iPads based at least in part on
8 the mistaken belief and impression cultivated by Apple that the devices could be used to download
            9   safe and trustworthy apps vetted by Apple and available in the App Store, and that Apple does not
           10   permit apps that violate its developer guidelines (including requirements for safe and trustworthy
11 cryptocurrency exchange apps). Plaintiff and members of the Class would not have purchased the
12 Apple hardware devices and/or would not have paid as much for them if Apple disclosed that the
14 83. In offering apps for download in the App Store onto Apple devices (e.g., iPhones or
15 iPads), Apple represented that applications downloaded from the App Store are safe for use on
16 Apple devices. Apple represents, inter alia, that “the App Store has proved to be a safe and trusted
17 place to discover and download apps,” that Apple is“[d]edicated to trust and safety,” that “Apps
18 must adhere to our guidelines,” that “[e]very week, over 500 dedicated experts around the world
           19   review over 100 Apps,” and that “[o]ver 1M submissions rejected for objectionable, harmful, unsafe,
           20   or illegal content.”41
21 84. As a result of these and other representations as alleged above, Plaintiff and Class
22 members purchased iPhones and iPads and downloaded and used the fraudulent cryptocurrency apps
23 from the App Store. A reasonable consumer would be deceived or mislead by Apple’s
24 representations because the representations regarding the legitimacy, safety, and security of App
25 Store apps are material to consumers’ decision to purchase iPhones and iPads and download and
           28   41
                        Supra n.2.
                                                                 23
00226224                                           CLASS ACTION COMPLAINT
                    Case 5:25-cv-05000         Document 1        Filed 06/12/25      Page 25 of 28
2 members were not legitimate, safe, or trustworthy and Defendant failed to properly vet the
4 86. By virtue of this ongoing practice and course of conduct, Defendant has violated and
5 will continue to violate section 1770(a)(2) of the CLRA by misrepresenting the source, sponsorship,
7 87. By virtue of this ongoing practice and course of conduct, Defendant has violated and
8 will continue to violate section 1770(a)(5) of the CLRA by representing that its goods or services
            9   have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities that they do not
           10   have.
11 88. By virtue of this ongoing practice and course of conduct, Defendant has violated and
12 will continue to violate section 1770(a)(7) of the CLRA by representing that its goods or services
13 are of a particular standard, quality, or grade, when in fact, they are of another.
14 89. By virtue of this ongoing practice and course of conduct, Defendant has violated and
15 will continue to violate section 1770(a)(9) of the CLRA by advertising goods with intent not to sell
16 them as advertised.
17 90. Defendant’s violations of the CLRA present a continuing threat to Plaintiff and Class
18 members in that Defendant continues to engage in the above-referenced acts and practices, and
           19   unless enjoined from doing so by this Court, will continue to do so. Plaintiff intends to continue to
           20   download and use App Store apps in the future if they are secure and comport with Apple’s claims
21 regarding standards, vetting, and review. Because Plaintiff and Class members own Apple iPhones
22 and/or iPads, and the ability to download and use apps is integral to the core functionality of the
23 Apple devices they own, they have no reasonable, comparable alternatives except to download and
24 use apps from Apple’s App Store. Injunctive relief, in the form of corrective advertising, is
25 necessary to dispel public misperception about the safety and trustworthiness of apps in Apple’s
           26   App Store that has results from years of Apple’s unlawful marketing efforts and to prevent current
           27   and future Apple product users from being misled. Defendant’s conduct is fraudulent, wanton, and
           28   malicious.
                                                                   24
00226224                                            CLASS ACTION COMPLAINT
                      Case 5:25-cv-05000      Document 1         Filed 06/12/25      Page 26 of 28
1 91. In compliance with Civil Code section 1780(d), attached as Exhibit A is the affidavit
2 showing that the action has been commenced in the proper forum.
3 92. Plaintiff seeks an order awarding equitable relief, as well as an award of attorneys’
4 fees and costs pursuant to Civil Code § 1780 (a), (d) and (e). Plaintiff will amend her complaint to
5 seek actual damages as provided by the CLRA if Apple does not take corrective action within thirty
7 COUNT III
8 Declaratory Relief
            9           93.    Plaintiff repeats and realleges all paragraphs as if fully set forth herein.
           10           94.    Pursuant to 28 U.S.C. § 2201, the Court “may declare the rights and other legal
11 relations of any interested party seeking such declaration, whether or not further relief is or could
12 be sought.”
13 95. An actual, present, and justiciable controversy exists between Plaintiff and Apple
14 regarding the truth and legality of Apple’s representations and omissions concerning the safety,
15 legitimacy, and vetting of apps available in the App Store, including the apps used in the fraudulent
17 96. Apple has publicly represented that apps from its App Store are legitimate, safe, and
18 secure and can be downloaded with confidence because of Apple’s vetting process and security
           19   standards.
           20           97.    Plaintiff and Class members downloaded and used such apps in reliance on Apple’s
22 98. Plaintiff, individually and on behalf of the other Class members, seek entry of the
23 following declarations: (a) Apple’s representations regarding the legitimacy, safety, vetting process
24 and security standards as alleged herein were false or deceptive; and (b) Apple is liable for damages
           26   ///
           27   ///
           28   ///
                                                                  25
00226224                                           CLASS ACTION COMPLAINT
                   Case 5:25-cv-05000         Document 1        Filed 06/12/25       Page 27 of 28
6 committing in the future those violations of law herein alleged and for corrective
7 advertising to inform users regarding Defendant’s failure to comply with its vetting
            9         D.      For damages and restitution to Plaintiff and to the Class as permitted by law and
           10                 equity under the laws alleged herein;
12 F. For costs of suit, including reasonable attorney fees, costs, and expenses under
14 G. For all other relief this Court deems just, equitable, and proper.
15 JURY DEMAND
16 Plaintiff hereby requests a jury trial for all issues triable by jury.
17 Respectfully submitted,
           21
                                                                 By:             s/ Timothy G. Blood
           22                                                                   TIMOTHY G. BLOOD
           23                                                    501 West Broadway, Suite 1490
                                                                 San Diego, CA 92101
           24                                                    Tel: 619/338-1100
                                                                 619/338-1101 (fax)
           25                                                    tblood@bholaw.com
                                                                 lhurst@bholaw.com
           26                                                    toreardon@bholaw.com
                                                                 abucci@bholaw.com
           27
                                                                 BARNOW AND ASSOCIATES, P.C.
           28                                                    BEN BARNOW (pro hac vice forthcoming)
                                                                  26
00226224                                          CLASS ACTION COMPLAINT
                Case 5:25-cv-05000   Document 1   Filed 06/12/25     Page 28 of 28
            9
           10
11
12
13
14
15
16
17
18
           19
           20
21
22
23
24
25
           26
           27
           28
                                                   27
00226224                                CLASS ACTION COMPLAINT