Apple Sued for $1.8M Over Fake Bitcoin Apps

Apple is facing a federal lawsuit from three users who claim to have lost $1.835 million in Bitcoin due to fake Sparrow Wallet applications distributed through its App Store.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, allege that the fraudulent apps captured their seed phrases, allowing attackers to control their associated wallets and drain their funds.

According to the complaint filed on July 24 in the U.S. District Court for the Northern District of California, the fake Sparrow apps were downloaded between May and August 2025, with Delgado losing $120,000, Ramirez losing $875,000, and Ellis losing $840,000.

Apple has stated that it promptly removed the impersonating apps and terminated developer accounts linked to them, but the plaintiffs argue that the company's safety marketing led them to believe that applications offered through the App Store had been properly vetted.