Apple Faces Lawsuit Over Fake Crypto Wallet on App Store

Three Bitcoin investors have filed a lawsuit against Apple, claiming they lost nearly $1.8 million after downloading a fake Sparrow Wallet app from the App Store and entering their recovery phrases.

The lawsuit alleges that Apple failed to adequately review and monitor software distributed through the App Store while promoting it as a trusted source for downloads.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, contend that the fraudulent wallet impersonated the legitimate Sparrow Wallet, prompting each victim to enter a seed phrase before their Bitcoin was transferred to wallets controlled by attackers.

According to the filing, Delgado installed the counterfeit app around May 1, 2025, and lost about 1.05 Bitcoin valued at roughly $120,000, while Ramirez allegedly forfeited 7.4 Bitcoin worth approximately $875,000 after downloading the app in July 2025.