Three users are accusing Apple of letting a fake Sparrow Wallet app be published on its App Store. According to a complaint filed in California, this fraudulent application allegedly enabled the theft of more than $1.8 million in bitcoin after the victims’ recovery phrases were entered. The case raises questions about the control of applications offered on the official store and about the verification mechanisms put forward to users.
In brief
- Three users sue Apple after $1.8 million in bitcoin was stolen.
- A fake Sparrow Wallet app stole their recovery phrases.
- Sparrow Wallet does not offer any official application on iPhone.
- Apple says it has removed fraudulent apps and associated accounts.
Apple sued after $1.8 million in bitcoin stolen
Three customers have filed a lawsuit against Apple in federal court for the Northern District of California. They believe that the company did not properly verify or monitor the applications available on the App Store, even though it presents this platform as a reliable environment. The plaintiffs claim they downloaded an app pretending to be Sparrow Wallet before entering their recovery phrase. This manipulation would have allowed fraudsters to transfer their bitcoins to other wallets.
Reported losses reach approximately $875,000 for James Ramirez, $840,000 for Christopher Ellis and $120,000 for Jalen Delgado. According to the document According to the complaint, these thefts occurred during the year 2025. The victims explain that they thought they were using the real Bitcoin wallet. However, Sparrow Wallet does not have any official application on iOS. The software is only available on Windows, macOS and Linux. Developer Craig Raw had already denounced on X the presence of fraudulent copies on the Apple store.
Company removed fraudulent apps after complaint
After the discovery of these fake wallets, Apple noted removed apps impersonating Sparrow Wallet. The company also specifies that it has closed the accounts of the developers concerned. She reminds that users and developers can report applications that violate App Store rules. Then, its teams examine these reports before removing non-compliant applications.
This legal case must now determine whether the controls exercised on the App Store were sufficient in this matter. The discussions before the court will allow the responsibilities of each party to be examined. The file could also provide clarification on the obligations of platforms in the face of fraudulent applications. In the meantime, Apple will have to respond to the accusations made by the three plaintiffs, while this procedure will take its course before the American justice system.
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