Apple App Store Users Lose $1.8M to Fake Sparrow Wallet Scams

Bitcoin users have lost over $1.8 million after downloading fake Sparrow Wallet apps on the Apple App Store.

The victims accuse Apple of failing to adequately review and remove the fraudulent applications, which mimicked a well-known desktop wallet available only on computers.

The plaintiffs claim that they entered their recovery phrases into the fake apps, allowing thieves to drain their holdings. One plaintiff, James Ramirez, lost around $875,000 in BTC after using the fake wallet, while another user, Christopher Ellis, had approximately $840,000 stolen.

Sparrow founder Craig Raw had been warning about unauthorized versions of the app since 2024, noting that Sparrow is a desktop-only wallet and a mobile version could have easily been flagged as fraudulent.