Purportedly, when the app is installed, it asks to view your list of contacts - claiming to streamline the searching through them - however, instead of that it uses the information to spam everyone you know. The messages sent out appear to come from the original downloader and contain a link to the now removed application.
Fortunately for anyone worried, the only people so far claiming to have been affected are those using the Russian version of the iOS. While this isn't much comfort for those that do, at least this isn't a universal problem.
Surprisingly however, the original author of the app has come forward, stating that the spamming was an unintended consequence. Speaking with AppleInsider.ru (via Wired)he said: "System is in process of beta-testing. In result of failure of one of the components there is a spontaneous sending of inviting SMS messages. This bug is in process of fixing. SMS are sent by the system, that is why it won't affect your mobile account."
The fact that someone has finally made it through the Apple regulatory system, is a little worrying. Until now it was thought that the app store was malware free, but if that's not necessarily the case any more, Apple users will need to be a little more careful with what software they download and what permissions they give to it.