$ 4.99 -lrb- £ 3.24 -rrb- ` uploader for instagram ' app was created by caleb benn .
the teenager is currently making $ 1,000 -lrb- £ 675.70 -rrb- a day from the app .
instagram allegedly contacted benn saying it violated terms of service .
facebook , which owns instagram , says it restricts use of private api .