Fake Sparrow Wallet Apps Steal $1.8 Million from Bitcoin Users

A recent wave of fake Sparrow Wallet apps has left Bitcoin users reeling after losses totaling $1.8 million.

The scammer's apps impersonated the well-known desktop wallet, available only on computers, and were distributed through Apple's App Store.

Victims claim that they entered their recovery phrases into the fake wallets, allowing thieves to drain their holdings. One plaintiff, James Ramirez, alleges that he lost approximately $875,000 in BTC after using a fake Sparrow Wallet app.

Sparrow founder Craig Raw had been warning about unauthorized versions of the app since 2024, but despite this, Apple's existing fraud detection measures failed to prevent the scammers from distributing their apps. The real Sparrow Wallet operates exclusively on Windows, macOS, and Linux with no official mobile release.