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Apple faced suit over lingering fake bitcoin wallet app
The lawsuit alleges three plaintiffs lost a combined about $1.84 million after entering bitcoin seed phrases into an app impersonating Sparrow Wallet.
CoinDesk reports that a federal lawsuit alleges Apple kept a fraudulent bitcoin wallet app on its App Store for more than a week after a user reported losing $875,000.
The suit, filed July 24 in the U.S. District Court for the Northern District of California, claims the app impersonated Sparrow Wallet and prompted plaintiffs to enter their bitcoin seed phrases, which the filing says can enable anyone with the phrases to control and transfer assets.
According to the complaint, the three plaintiffs say they collectively lost about $1.84 million, with one claim describing 7.4 BTC transferred to a scammer and another alleging roughly $840,000 stolen after a separate download.
The plaintiffs argue Apple’s App Store marketplace and marketing led them to believe apps were vetted and safe, and the filing says Apple later removed the app and terminated associated developer accounts as part of its efforts against App Store fraud and scams.
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