Yes, evil is not outside God's sovereignty. But I wouldn't say God "created" evil? I don't think that's the correct way to put it.
"Evil is designed by God."
-John MacArthur
"God didn't just permit evil, He ordained it."
-RC Sproul
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Ordained is probably the best way to capture that God knew evil/sin would come into existence, and yet He allowed for it for Greater purposes.
Yes, "ordained". I think this is the way to put it as well.
