Apple Sued Over Fake Crypto Wallet That Stole $1.8 Million

Three Bitcoin investors have filed a lawsuit against Apple, alleging that they lost nearly $1.8 million after downloading a fake Sparrow Wallet app from the App Store and entering their recovery phrases.

The plaintiffs claim that the counterfeit app impersonated the legitimate Sparrow Wallet, prompting each victim to enter a seed phrase before their Bitcoin was transferred to wallets controlled by attackers.

According to the complaint, one of the victims installed the fake app around May 1, 2025, and lost about $120,000 in Bitcoin, while another reportedly forfeited $875,000 after downloading the app in July 2025.

The lawsuit also alleges that Apple promoted and failed to remove the counterfeit application despite earlier warnings from the developer of the legitimate Sparrow Wallet, who had publicly warned that scammers were repeatedly publishing fraudulent versions in Apple's marketplace.