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

Apple is facing a lawsuit over a fake Bitcoin wallet app that allegedly stole more than $1.8 million from three customers who downloaded it from the App Store.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, claim they entered their seed phrases into what appeared to be the legitimate Sparrow Wallet app on iOS, only to see their Bitcoin transferred to private wallets controlled by scammers.

The lawsuit alleges that Apple failed to properly review and monitor apps despite promoting its marketplace as a safe and trusted environment, allowing fake versions of Sparrow Wallet to remain available even after multiple reports.

Sparrow Wallet developer Craig Raw has criticized Apple for its slow response to the issue, noting that a scam app was still live weeks after being flagged in early 2024. The plaintiffs are seeking damages, including reimbursement of all stolen funds.