28.07.2026 14:01
Tech giant Apple faces a lawsuit filed by three users over a fake Bitcoin wallet app on the App Store. The plaintiffs claim they had a total of $1.8 million worth of Bitcoin stolen through the fake app.
A lawsuit filed in a federal court in California alleges that a fake app that passed through the App Store review process caused three cryptocurrency investors to lose a total of $1.835 million in Bitcoin. James Ramirez, Christopher Ellis, and Jalen Delgado, who filed the lawsuit in the U.S. District Court for the Northern District of California, argue that Apple's aggressive marketing of the App Store as a "safe and trusted place" has led consumers to a false sense of security regarding the iOS ecosystem.
According to the plaintiffs, when users entered their private recovery phrases into the fake app, scammers transferred the Bitcoins to their own wallets. Ramirez is said to have lost approximately $875,000, Ellis approximately $840,000, and Delgado $120,000. The losses occurred between May and August 2025.
FAKE APP EXACTLY IMITATED THE REAL WALLET
At the center of the case is an app that imitated Sparrow Wallet, a widely used open-source Bitcoin wallet. The real Sparrow Wallet has never been an iOS app; the platform only runs on desktop operating systems such as Windows, macOS, and Linux. Despite this, a fake app copied Sparrow's name, logo, and interface and appeared on Apple's app store, leading many users to believe the app was genuine. When victims downloaded the app and entered their sensitive recovery phrases, the app silently exported the keys to wallets controlled by the scammers.
LAWSUIT ACCUSES APPLE ON THREE SEPARATE GROUNDS
The lawsuit targets Apple on three main legal grounds. According to the plaintiffs, Apple argues to regulators and courts worldwide that its complete control over iOS app distribution protects users from malware and fraud. The plaintiffs assert that if the company directs users to a single store with a promise of stringent security, it also assumes the obligation to catch obvious imitation scams. The second ground, according to the 54-page complaint, is based on Apple's promotional campaigns presenting the App Store as a secure environment, which leads users to trust listed apps without independent verification.
The third ground is based on the disregard of warnings from the developer. Craig Raw, the developer of the real desktop Sparrow Wallet, has publicly shared his issues with Apple's app review for years and has repeatedly reported similar fake apps to Apple. When Raw attempted to submit an official placeholder app with screenshots clearly warning users that Sparrow Wallet only works on desktop, Apple's review team flagged his developer account for closure on grounds of "dishonest activity" before reversing the decision.
APPLE SAYS IT HAS REMOVED FAKE APPS
Apple has not yet publicly commented on the matter. The company has stated that it removed apps imitating Sparrow Wallet and closed the associated developer accounts. Apple emphasized that developers and users can report apps that violate its rules and that it takes action against apps that do not comply with App Store guidelines. Experts recommend that users verify whether a wallet app actually exists from the project's official website before downloading it, enter private recovery phrases only into apps whose identity they have independently confirmed, and perform a small test transaction before depositing large amounts.