Apple Sued Over Counterfeit Sparrow Wallet App That Drained $1.8M in Bitcoin

Three Bitcoin holders have sued Apple in California federal court over a counterfeit Sparrow Wallet app that allegedly drained $1.8 million from their wallets.

The complaint, filed on July 24 in the Northern District of California, brings eight counts including fraud, negligent misrepresentation and strict products liability.

According to the filing, one plaintiff reported the app to Apple on July 25, 2025, after losing $875,000 worth of BTC. Another plaintiff downloaded the fake app nine days later and lost $840,000.

The Sparrow Wallet developer, Craig Raw, has publicly flagged copycat iOS apps since January 2024, but his warnings seem to have gone unheeded by Apple.

Raw's own App Store listing, intended to warn iOS users that Sparrow is a desktop-only wallet, was rejected as 'placeholder content' and he was subsequently flagged for termination. However, the decision was reversed on appeal.