Apple Sued Over Fake Bitcoin Wallet Apps on App Store

Apple is facing a lawsuit over its handling of Bitcoin wallet apps on the App Store. Three customers, James Ramirez, Christopher Ellis, and Jalen Delgado, claim they lost a combined $1.8 million after downloading a fake Sparrow Wallet app from the store. The plaintiffs entered their seed phrases into the fraudulent app, allowing scammers to transfer their Bitcoin.

The complaint alleges that Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace. Sparrow Wallet's developer, Craig Raw, has previously criticized Apple over fake versions of the app appearing in the store. The wallet has no official iOS app.

Apple removed apps impersonating Sparrow Wallet and terminated developer accounts linked to those apps. The company said developers and users can report apps that violate its guidelines, adding that it takes action against apps that do not comply with App Store rules.