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

Three Bitcoin holders have filed a lawsuit against Apple over a counterfeit Sparrow Wallet app that drained their combined $1.8 million worth of cryptocurrency.

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, each plaintiff entered a seed phrase into the app, which allowed the scammers to drain their funds. James Ramirez lost 7.4 BTC, put at $875,000; Christopher Ellis $840,000; and Jalen Delgado 1.05 BTC, put at $120,000.

Apple has declined to comment on the lawsuit, instead pointing to its latest ecosystem analysis which found that it rejected more than 371,000 malicious App Store submissions.