Apple Hit With Lawsuit Claiming Fraudulent Wallet App Stole More Than $1.8M in Bitcoin
TL;DR
- Fraud Losses: Three customers say a fake Bitcoin wallet app on Apple’s App Store stole more than $1.8 million after they entered seed phrases.
- Safety Claims: The lawsuit argues the fraud succeeded because the company promoted the App Store as a trusted environment while failing to remove fake Sparrow Wallet apps.
- Developer Concerns: Sparrow Wallet’s creator criticized the company’s slow response, and plaintiffs seek damages as Apple says it has removed impersonating apps and terminated related accounts.
Apple is facing a new legal challenge after three customers say they collectively lost more than $1.8 million in Bitcoin through a fraudulent wallet app they downloaded from the App Store. The lawsuit, filed in the US District Court for the Northern District of California, argues that the company failed to properly review and monitor apps despite promoting its marketplace as a safe and trusted environment.
Allegations of Misleading Safety Claims
According to the complaint, the plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado downloaded what appeared to be a legitimate Sparrow Wallet app on iOS. The real Sparrow Wallet is only available on Windows, macOS, and Linux, but scammers have repeatedly published fake versions in the App Store. After entering their seed phrases, the plaintiffs saw their Bitcoin transferred to private wallets controlled by scammers, resulting in losses of approximately $875,000, $840,000, and $120,000 between May and August of 2025.
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