Apple’s App Store promoted fake Bitcoin wallet that stole $1.8M after developer spent a year warning them
Three Bitcoin holders sued Apple on July 24 in California, alleging they lost about $1.8 million after downloading fake Sparrow Wallet apps from the App Store and entering seed phrases. The complaint says Apple failed to stop or remove repeated impersonators despite warnings from Sparrow founder Craig Raw since early 2024, and later even surfaced one fake app in crypto app collections. Plaintiffs argue Apple’s “safe and trusted” App Store claims misled them and that Apple had specific notice after earlier theft reports but still allowed another victim to be targeted. Apple says it removed the fraudulent apps and terminated the developer accounts. The case adds to broader concerns about crypto-wallet impersonation on Apple’s platforms, including research finding dozens of fake wallet apps and other U.S. losses. The dispute tests Apple’s security marketing and its centralized app review model.
