Apple Sued Over Fake Bitcoin Wallet App That Cost Users $1.8 Million

Apple is facing a lawsuit from three customers who claim they lost a combined $1.8 million after downloading a fraudulent Bitcoin wallet app from the App Store.

Details of the Complaint

The lawsuit, filed in the US District Court for the Northern District of California, argues Apple failed to properly review and monitor apps despite marketing the App Store as a trusted platform. Plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado said they entered their wallet seed phrases into the fake app, allowing scammers to drain their Bitcoin holdings. Reported losses ranged from around $120,000 to $875,000 during 2025.

App Impersonated Popular Wallet

The fraudulent app mimicked Sparrow Wallet, a Bitcoin wallet available on Windows, macOS, and Linux that has no official iOS version. The wallet’s developer has previously raised concerns publicly about counterfeit versions appearing on Apple’s platform.

Apple’s Response

Apple said it has removed the impersonating apps and terminated the developer accounts responsible. The company noted that both developers and users can report App Store violations, and that it takes action against apps that break its guidelines.