Apple Sued for $1.8 Million Over Fake Bitcoin Wallet App on App Store

Apple is facing a $1.8 million lawsuit over a fake Bitcoin wallet app that appeared on the iOS App Store, according to a complaint filed in the U.S. District Court for the Northern District of California.

The lawsuit alleges that the tech giant failed to adequately review and monitor software on its platform, allowing malicious apps to slip through. The plaintiffs claim they lost a combined $1.8 million between May and August 2025 after downloading a spoofed version of Sparrow Wallet, a digital asset management tool available for desktop platforms.

The scam app disguised itself as the legitimate Sparrow Wallet, but once users logged in, it automatically drained their accounts and transferred the cryptocurrency to private wallets controlled by attackers. The plaintiffs argue that Apple's marketing campaign framing the App Store as a secure environment led them to trust the app, despite its lack of rigorous safety screening.

The lawsuit further alleges that Apple failed to act promptly after receiving direct warnings about the fraudulent listings, including a public caution from Craig Raw, the genuine developer behind Sparrow Wallet. The complaint asserts multiple legal claims, including violations of California's Consumers Legal Remedies Act and strict products liability.