Apple Accused of Allowing $1.8 Million Crypto Scam on App Store

Three victims of a crypto scam have accused Apple of allowing a fake version of the Sparrow Wallet app to steal $1.8 million from their wallets between May and August 2025.

The fake app, available on the App Store, asked users to enter their recovery phrase, which was then handed over to scammers who used it to drain their cryptocurrency accounts.

Craig Raw, the developer of the actual Sparrow Wallet, reported the fake versions to Apple in January 2024 and publicly confirmed that month that the fake app was still live despite repeated reports. However, Apple responded by terminating his developer account, which would have prevented him from maintaining the macOS version.

The three victims are now suing Apple, alleging that it misrepresented the App Store as trustworthy despite knowing about the fake apps.