Apple Faces $1.8M Lawsuit Over Fake Crypto Wallet App on iOS Store

A fake cryptocurrency wallet app, masquerading as Sparrow Wallet, was downloaded from Apple's iOS App Store between May and August 2025. The phony app collected users' seed phrases, allowing attackers to drain funds from their accounts.

The three plaintiffs who lost a combined total of $1.8 million in Bitcoin claim that the App Store failed to adequately verify the app's authenticity, despite it being placed in curated cryptocurrency collections and appearing alongside legitimate apps.

Craig Raw, the official developer of Sparrow Wallet, testified that he struggled for years to flag copycat versions on the store. Apple threatened to suspend his developer account when he attempted to upload a text-only app warning users about the non-existent mobile version.