Apple Sued Over $1.8M Lost Through Fake Bitcoin Wallet App

Apple is facing a lawsuit from three users who lost nearly $2 million in Bitcoin through a fake Sparrow Wallet app.

The complaint, filed on July 24 in the U.S. District Court for Northern California, alleges that the users downloaded the app between May and August 2025 and entered their seed phrases. Scammers then transferred their BTC away from the wallets.

James Ramirez allegedly lost about $875,000, Christopher Ellis $840,000, and Jalen Delgado $120,000. They argue that they trusted the app because Apple presents the App Store as a controlled marketplace where software is reviewed for security and fraud.

The plaintiffs accuse Apple of negligence, fraud, and violations of consumer-protection laws, saying it failed to properly screen the app or warn users that fake crypto wallets could still pass its review process. They are seeking reimbursement, punitive damages, and changes to Apple's vetting and warning systems.