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

Three individuals are suing Apple over a fake App Store application called Sparrow Wallet that allegedly stole $1.8 million in Bitcoin.

The plaintiffs claim they downloaded and used the app, which impersonated the legitimate Sparrow Bitcoin wallet, and entered their seed phrases to transfer their cryptocurrency to scammers' wallets.

According to the complaint, Apple had been warned about fraudulent Sparrow Wallet apps more than a year before the plaintiffs' losses, but failed to adequately review and monitor applications distributed through the App Store.

The legitimate Sparrow Wallet is a desktop application available for Windows, macOS, and Linux, but does not offer an iOS version. The developer of the app, Craig Raw, had warned users to only obtain Sparrow Wallet through its official website rather than trusting an application solely because it was available through an app store.

Apple has removed the fraudulent applications and terminated the associated developer accounts, but the plaintiffs are seeking reimbursement for their stolen cryptocurrency, compensatory and punitive damages, restitution, attorneys' fees, and other damages.