Apple had threatened to remove Damus earlier this month over the app's tips feature, claiming that content creators could use it to sell digital content on the platform.
Jobs’ Mob insists that developers from selling additional in-app content must go through Apple which will take a 30 per cent cut.
To avoid a ban, the team behind Damus had to tweak the app's tipping feature, which is made possible through Bitcoin's Lightning Network. The company previously explained in a tweet that it had to remove the tips button from posts and was only allowed to permit tips on profiles.
Damus tried to clarify that tipping isn't used to "unlock content"—but to no avail for Apple apparently knew something it did not.
Dorsey, who now heads the Bitcoin-focused financial services firm Block wondered publicly why doesn't offer Bitcoin (BTC) support for its mobile payment service, Apple Pay.
The spat has renewed questions of whether Apple has too much power over consumer applications, and in some ways validated cryptocurrency advocates' push for a financial system that's resistant to censorship.