Apple Sued Over Fake Wallet on App Store

Apple is facing a lawsuit in California after three customers claimed to have lost a combined total of $1.8 million through a fake cryptocurrency wallet on the iOS App Store.

The application, posing as Sparrow Wallet, ran on the App Store between May and August 2025. Users who downloaded it were prompted to type in their seed phrases, which attackers then used to drain funds from their accounts.

The three plaintiffs now suing lost $875,000, $840,000, and $120,000 in Bitcoin, respectively. They claim that while Apple markets the App Store as a 'safe and trusted' marketplace, it is anything but.

Apple declined to comment on the active litigation. Its representatives, however, said the fraudulent app had been removed and its associated developer accounts terminated.