Apple Accused of Allowing Fake Bitcoin Wallet App on App Store
A federal lawsuit has been filed against Apple, alleging that the company failed to remove a fraudulent bitcoin wallet app from its App Store after a user reported an $875,000 theft. The app impersonated Sparrow Wallet and allowed users to transfer their seed phrases, which allowed scammers to steal assets.
The three plaintiffs claim they collectively lost around $1.84 million after downloading the app and entering their seed phrases. Apple has since removed the app and terminated associated developer accounts as part of its efforts to combat App Store fraud and scams.
The lawsuit argues that Apple's marketing led users to believe that apps in the App Store were vetted and safe, which is not true according to the plaintiffs. The case seeks reimbursement of the stolen assets, compensatory and punitive damages, and potentially multiplied damages.