Apple Hit with Lawsuit Over Fake Bitcoin Wallet App on App Store

Apple is facing another lawsuit over its handling of a fake Bitcoin wallet app on the App Store. The plaintiffs claim that the company allowed a scammer to impersonate the legitimate Sparrow Wallet, leading to significant losses for three individuals who collectively lost approximately $1.84 million.

The victims entered their Bitcoin seed phrases into the fake application, enabling scammers to drain their funds. One plaintiff reported losing $875,000, while another lost $840,000. The delay in removing the app after the first report allegedly contributed to further losses.

Apple has stated that it removed apps impersonating Sparrow Wallet from the App Store and terminated the associated developer accounts. This is not the first time Apple has faced similar claims - a 2021 case was ultimately dismissed by a federal judge. The plaintiffs are seeking reimbursement of the stolen assets along with compensatory and punitive damages.