When I perform your search, I get legitimate results at the top, and I don't see the specific app from the Reddit thread. But about at about rank #7, I see an app that uses a distorted form of the same logo, a different unfamiliar publisher, a slightly altered title and a similar smattering of only a few reviews.

It sounds like somebody is burning developer accounts to keep reposting the scam app. Not unlike people being banned from a website and then resubscribing with a different email or through a VPN or whatever. It slipping through into your results isn't so much plain neglect as it is an arms race that Apple is on the losing side of this time.

Robust algorithmic ranking and moderation at scale is a myth, though, and you can find this happen pretty much everywhere. This one will probanly get squashed with some near-term update to their algorithm, and then get compromised again sometime later since crypto is so ripe for scamming.

You can't escape personal due diligence and "it was top ranked!" has never been that.