Three Investors Sue Apple Over $1.8M Bitcoin Losses From Fake Sparrow Wallet App

Three cryptocurrency investors sued Apple on July 24, 2026, alleging combined losses of approximately $1.835 million in Bitcoin after downloading a counterfeit Sparrow Wallet application that allegedly passed the company's App Store review process. James Ramirez, Christopher Ellis, and Jalen Delgado filed a consolidated complaint in the U.S. District Court for the Northern District of California, claiming they entered their wallet recovery phrases into the fraudulent app, which then transferred their funds to scammer-controlled wallets.

According to the complaint, the first victim downloaded the fake app around May 1, 2025, and lost 1.05 BTC valued at roughly $120,000. Ramirez downloaded it on July 25, 2025, and lost 7.4 BTC worth about $875,000, then reported the fraud to Apple the same day. Ellis downloaded the app on or around August 3, 2025—over a week after Ramirez's report—and lost Bitcoin valued at about $840,000. The plaintiffs argue Apple had actual notice yet failed to remove the app before Ellis downloaded it, seeking compensatory and punitive damages alongside injunctive relief.