Apple faces a lawsuit from three customers who lost a combined $1.8 million after downloading a fake Bitcoin wallet app from the App Store. The complaint, filed Friday in the US District Court for the Northern District of California, alleges Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace. The plaintiffs entered their seed phrases into the fraudulent app impersonating Sparrow Wallet, allowing scammers to transfer their Bitcoin during 2025.
Three Plaintiffs Report Combined $1.8 Million Losses During 2025
The plaintiffs, James Ramirez, Christopher Ellis and Jalen Delgado, reported losses of about $875,000, $840,000 and $120,000, respectively, according to the complaint filed in the US District Court for the Northern District of California. The three customers said they entered their seed phrases into the fraudulent app, allowing scammers to transfer their Bitcoin. The losses occurred during 2025, according to a copy of the filing obtained by MacRumors.
Sparrow Wallet Developer Previously Criticized Apple Over Fake Apps
Sparrow Wallet is available on Windows, macOS and Linux. Its developer, Craig Raw, has previously criticized Apple over fake versions of the app appearing in the App Store. The wallet has no official iOS app. Raw's criticism predates the current lawsuit filed by the three plaintiffs.
Apple Removes Impersonating Apps and Terminates Developer Accounts
Apple told MacRumors that it has removed apps impersonating Sparrow Wallet and terminated developer accounts linked to those apps. The company said developers and users can report apps that violate its guidelines, adding that it takes action against apps that do not comply with App Store rules.
FAQ
What did the three plaintiffs lose after downloading the fake Bitcoin wallet app?
James Ramirez, Christopher Ellis and Jalen Delgado lost a combined $1.8 million during 2025 after downloading a fake Bitcoin wallet app from Apple's App Store. The individual losses were approximately $875,000, $840,000 and $120,000, respectively. The plaintiffs entered their seed phrases into the fraudulent app impersonating Sparrow Wallet, allowing scammers to transfer their Bitcoin.
Why did the plaintiffs file a lawsuit against Apple?
The complaint, filed Friday in the US District Court for the Northern District of California, alleges Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace. The three customers said they lost their Bitcoin after downloading a fake wallet app that impersonated Sparrow Wallet, which has no official iOS app.
What actions did Apple take after the fake Sparrow Wallet apps were discovered?
Apple removed apps impersonating Sparrow Wallet and terminated developer accounts linked to those apps, according to a statement Apple provided to MacRumors. The company said developers and users can report apps that violate its guidelines and that it takes action against apps that do not comply with App Store rules.
