Apple Sued After Fake iPhone Wallet App Drained $1.8M in Bitcoin
Three Bitcoin holders sued Apple in California over a counterfeit “Sparrow Wallet” app they say stole about $1.8 million in crypto. The complaint alleges fraud, negligent misrepresentation, and strict products liability, claiming users entered seed phrases into the fake app and had their funds drained. Sparrow Wallet is desktop-only and has never released an iOS app, so any App Store version using that name would be impersonation. The plaintiffs say Apple left fraudulent copies available even after reports, and may have promoted them through rankings and curated crypto collections. Craig Raw, the real Sparrow Wallet developer and trademark owner, has repeatedly flagged similar App Store scams since 2024. The suit also argues Apple should be treated as putting the App Store itself into the stream of commerce, making it liable for failure to warn. Apple pointed to its malware-rejection statistics and said no Sparrow copycats are currently listed.
