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

Apple is facing a lawsuit in California after three customers claimed to have lost a combined total of $1.8 million through a fake cryptocurrency wallet on the iOS App Store.

The application, claiming to be Sparrow Wallet, ran on the App Store from May to August 2025. However, Sparrow Wallet is actually a desktop-only software for Windows, macOS, and Linux. The fake app tricked users into entering their seed phrases, which attackers then used to drain funds from their accounts.

The three plaintiffs now suing lost $875,000, $840,000, and $120,000 in Bitcoin, respectively. They claim that Apple's App Store is not as 'safe and trusted' as it markets itself. The store placed the fake app in its curated cryptocurrency collections, adding to its credibility.

Apple has since removed the fraudulent app and terminated its associated developer accounts. However, the company still faces charges of false advertising and consumer law violations. The plaintiffs are seeking Bitcoin reimbursement and punitive damages, as well as a court order requiring Apple to issue explicit fake app warnings in the store.