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Apple Sued over Fake App Store Crypto Wallet App Stealing $1.8M in Bitcoin
The plaintiffs say Apple failed to stop spoofed wallet apps that cost users $1.8 million in Bitcoin despite repeated fraud reports.
On Friday, a lawsuit filed in the District Court of Northern California alleged that three plaintiffs—James Ramirez, Christopher Ellis, and Jalen Delgado—lost more than $1.8 million after downloading a fraudulent Sparrow Wallet app.
The complaint alleges Apple violated California's Consumers Legal Remedies Act by marketing the App Store as "a safe and trusted place to discover and download apps," despite the official Sparrow Bitcoin Wallet not being available on iOS devices.
Sparrow Wallet developer Craig Raw publicly criticized Apple's slow response to fake versions of his software, noting his attempt to publish a "placeholder" app resulted in temporary account termination due to "dishonest activity."
In response, Apple stated it removed apps impersonating Sparrow Wallet and terminated associated developer accounts, while reporting it rejected more than 371,000 misleading submissions in 2025, preventing over $2.2 billion in potentially fraudulent transactions.
The litigation challenges Apple's long-standing argument that strict platform control ensures user safety, a claim the company uses to resist deregulation, as plaintiffs seek a jury trial to recoup their lost funds and secure improved App Store disclosures.
Three users in the United States opened a lawsuit against Apple after losing a total of approximately $1.8 million worth of cryptocurrency through an app downloaded from the App Store.