28.07.2026
3 min
108
Three plaintiffs have sued Apple over a fraudulent Bitcoin wallet app called Sparrow Wallet that was listed on the App Store, alleging they lost a combined $1.8 million as a result.
According to the lawsuit, Apple made false and misleading claims about the security and integrity of the App Store. The company repeatedly stated that all apps available through the App Store are thoroughly reviewed, trustworthy, and safe, encouraging users to rely on Apple’s vetting process.
With that in mind, the plaintiffs searched the App Store for a legitimate Bitcoin wallet called Sparrow Wallet. Instead of downloading the genuine app, however, they installed a fake version.
The fraudulent app prompted users to enter their wallet recovery seed phrase. Once it was entered, the attackers immediately transferred the plaintiffs’ cryptocurrency to wallets under their control. In total, the three victims allegedly lost $1.835 million.
The plaintiffs argue that Apple is responsible for their losses because of its security claims about the App Store.
“Despite extensive marketing efforts, Apple failed to exercise reasonable care and oversight in properly reviewing and monitoring the applications distributed through the App Store. This failure allowed cybercriminals to exploit the trust and reputation Apple had built, resulting in the theft of funds from Apple’s own customers,” the lawsuit states.
The plaintiffs are asking the U.S. District Court for the Northern District of California to award damages. They are also seeking a court order requiring Apple to provide clearer warnings about cryptocurrency apps and to stop making allegedly misleading claims about the security of the App Store.
In a statement to MacRumors, an Apple spokesperson said the company acted quickly to remove apps impersonating Sparrow Wallet from the App Store and terminated the developer accounts associated with those applications.
