Apple Sued Over Fake Bitcoin Wallet App Scam That Stole $1.84 Million

A lawsuit has been filed against Apple over its App Store review process, which allegedly created a false sense of trust that enabled a group of scammers to steal more than $1.84 million in cryptocurrency from three plaintiffs.

The complaint argues that Apple's reputation for operating a tightly controlled software marketplace influenced the plaintiffs' decision to trust a fraudulent Bitcoin wallet application called Sparrow Wallet, which impersonated a legitimate desktop wallet available only on Windows, macOS and Linux.

The app was displayed in cryptocurrency-related App Store categories and users entered their wallet recovery phrases after believing it was legitimate. Apple allegedly failed to remove the app despite earlier warnings that fraudulent Sparrow Wallet copies had appeared on the App Store.

According to the filing, plaintiffs James Ramirez, Christopher Ellis and Jalen Delgado collectively lost more than $1.84 million in Bitcoin between May and August 2025. The case could test how far platform operators are responsible for financial losses caused by impersonation apps.