Bitcoin Users Lose $1,800,000 After Installing Fake Sparrow Wallet Apps on Apple App Store

Bitcoin (BTC) users have lost a combined $1.8 million after downloading fraudulent mobile apps that impersonated a well-known desktop wallet available only on computers.

In a lawsuit filed in the United States District Court for the Northern District of California, San Jose Division, victims accuse Apple of failing to adequately review and remove applications masquerading as the Sparrow Wallet mobile app, while promoting the App Store as a safe and trusted source for software.

The victims claim that they entered their recovery phrases into a fake Sparrow Wallet app, allowing thieves to drain their holdings.

Sparrow founder Craig Raw had been warning about unauthorized versions of the app carrying the same name as early as 2024. Sparrow is a desktop-only wallet, and a mobile version of the application could have been easily flagged as fraudulent.

One plaintiff, James Ramirez, claims thieves drained roughly $875,000 in BTC after using the fake wallet and notes that he notified Sparrow and Apple the same day. Another user, Christopher Ellis, alleges that he encountered a similar app days later and thieves stole $840,000 in crypto.

… Continue reading the full article at the original source below.