Apple Sued Over Fake App Store Crypto Wallet App Stealing $1.8M in Bitcoin

Apple has been sued by three individuals who claim they lost approximately $1.8 million in Bitcoin after downloading and using a fake Sparrow Wallet app from the App Store.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, allege that Apple failed to adequately review and monitor applications distributed through the App Store, despite being warned about fraudulent Sparrow Wallet apps more than a year prior to their losses.

According to the complaint, the scammers impersonated the legitimate Sparrow Bitcoin wallet and instructed the victims to enter their seed phrases, which led to the transfer of their cryptocurrency to wallets controlled by the scammers.

The legitimate Sparrow Wallet developer, Craig Raw, had warned users about the fake apps in a January 6, 2024 post on his website, stating that mobile apps using the 'Sparrow Wallet' name were fake and advising users to only obtain Sparrow Wallet through its official website.