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Apple sued over alleged fake Sparrow Wallet draining users’ Bitcoin
The complaint, filed in Northern District of California, says three plaintiffs lost about $875,000, $840,000, and $120,000 after entering seed phrases into the fraudulent app.
Apple is facing a lawsuit from three App Store customers who allege a fake Sparrow Wallet app caused combined Bitcoin losses of more than $1.8 million, after the users downloaded the app from Apple’s marketplace and entered their seed phrases, according to Cointelegraph. The complaint was filed Friday in the US District Court for the Northern District of California and alleges Apple did not adequately review and monitor apps despite promoting the App Store as a trusted marketplace.
Cointelegraph reports that the plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, each report losses during 2025 of about $875,000, $840,000, and $120,000, respectively, after scammers allegedly used the seed phrases to transfer their Bitcoin. The complaint also contends that Sparrow Wallet’s iOS presence is limited, noting that the wallet has no official iOS app.
According to Cointelegraph, Sparrow Wallet is available on Windows, macOS, and Linux, and its developer, Craig Raw, has previously criticized Apple over fake versions of the app appearing in the App Store. Apple, in comments to MacRumors, said it removed apps impersonating Sparrow Wallet and terminated developer accounts linked to the fraudulent apps.
Cointelegraph says Apple added that developers and users can report apps that violate its guidelines and that the company takes action against apps that do not comply with App Store rules. The lawsuit adds a new legal challenge for Apple over how it evaluates and polices allegedly fraudulent crypto wallet applications on its platform.
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