Apple Sued by Customers Who Lost Combined $1.8 Million Through Fake Bitcoin Wallet in App Store

Apple is facing a caller suit from 3 customers who allegedly mislaid a combined $1.8 cardinal aft falling unfortunate to a fake Bitcoin wallet app successful the App Store, according to a complaint filed successful California national tribunal connected Friday.


The ailment alleges that Apple violated California's Consumers Legal Remedies Act and different laws by failing to adequately reappraisal and show apps distributed done the App Store, contempt selling it arsenic "a harmless and trusted spot to observe and download apps." Due to these assurances successful Apple's marketing, the ailment said the plaintiffs trusted that a Sparrow Wallet app they downloaded from the App Store connected iOS was legitimate, erstwhile successful world it was a fraudulent spoof designed to bargain Bitcoin from users.

Sparrow Wallet is only disposable connected Windows, macOS, and Linux. The fashionable Bitcoin wallet is not disposable connected iOS, but scammers person released fake lookalike apps successful the App Store that tin instrumentality users into giving up power of their funds.

"Users recovered their accounts had been wiped retired and their cryptocurrency assets transferred to the scammers' backstage wallets," the ailment says. "This fraud succeeded precisely due to the fact that Apple exploited the user spot it had deliberately cultivated done much than a decennary of selling the App Store arsenic a uniquely harmless and trusted environment."

The plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado had Bitcoin amounts that were worthy astir $875,000, $840,000, and $120,000 respectively stolen via the app from May to August of 2025, according to the complaint.

Even erstwhile victims reported fraud, the suit alleges that Apple often took small to nary action, and it says different fake Sparrow apps stay successful the App Store.

Sparrow Wallet developer Craig Raw has publically addressed Apple's dilatory effect to aggregate fake versions of his app appearing successful the App Store. In a January 2024 societal media post, for example, helium said "there is inactive a scam 'Sparrow Wallet' app connected the @Apple App Store, contempt myself and others having reported it weeks ago."

Last month, Raw said his effort astatine protecting users by submitting a "placeholder" app to the App Store that contained selling screenshots stating that Sparrow Wallet is simply a desktop app lone resulted successful his Apple Developer relationship being flagged for termination owed to "dishonest activity." Apple aboriginal reversed this decision.

The plaintiffs are seeking damages, including reimbursement of each funds wrongfully mislaid done the fraudulent Sparrow Wallet app.
This article, "Apple Sued by Customers Who Lost Combined $1.8 Million Through Fake Bitcoin Wallet successful App Store" archetypal appeared connected MacRumors.com

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