Apple Sued Over $1.8 Million Crypto Wallet Scam
AI-generated image · US National Wire
Three plaintiffs allege Apple's App Store security failed to block a fraudulent app impersonating Sparrow Wallet.
Apple is facing a lawsuit in the U.S. District Court of Northern California after three users claim they lost more than $1.8 million to a fraudulent cryptocurrency wallet app. According to reporting from TechCrunch, the plaintiffs downloaded a fake version of Sparrow Wallet—despite the official Sparrow Bitcoin wallet not being available on iOS—and transferred their Bitcoin into the app.
The complaint lists specific losses for the plaintiffs: James Ramirez lost approximately $875,000, Christopher Ellis lost around $840,000, and Jalen Delgado lost roughly $120,000. The lawsuit argues that Apple has marketed its closed ecosystem as a superior security measure to justify opposing sideloading and third-party app stores, effectively making consumers dependent on Apple's promises of reliability.
TechCrunch reports that the filing further accuses Apple of knowingly hosting fraudulent apps, citing public criticism from Craig Raw, the creator of Sparrow Bitcoin Wallet, who stated that Apple allowed fake versions of his app to remain on the store. The plaintiffs are seeking a jury trial to recoup their losses and are demanding that Apple implement risk disclosures and warnings for App Store users.
Apple declined to comment on the lawsuit but told TechCrunch that impersonation apps violate its guidelines and are removed quickly. The company stated there are currently no Sparrow Wallet copycats on the store and noted that in 2025, it rejected over 371,000 submissions for being spam, misleading, or copying other apps.