Apple Sued Over $1.8M in Bitcoin Losses Due to Fake Sparrow Wallet App
Three Apple users have filed a lawsuit against the tech giant in California's Northern District federal court, accusing it of failing to properly verify and monitor apps on its App Store. The complaint alleges that the company allowed a fake Sparrow Wallet app to be published, which stole over $1.8 million in Bitcoin from the victims after they entered their recovery phrases.
The plaintiffs claim they thought they were using the genuine Sparrow Wallet app, but it has no official iOS presence and is only available on Windows, macOS, and Linux platforms. Developer Craig Raw had previously denounced the presence of fraudulent copies of Sparrow Wallet on Apple's store.
Apple reportedly removed the fake apps and closed the accounts of the developers involved after discovering the issue. The company encourages users and developers to report non-compliant apps, which are then reviewed and removed by its teams.