Apple sued over $1.8M Bitcoin loss from fake wallet app

Apple is facing a lawsuit from three customers who allege they lost a combined $1.8 million in Bitcoin after downloading a fraudulent app impersonating the Sparrow Wallet from the App Store. The complaint, filed on July 24 in the U.S. District Court for the Northern District of California, accuses the company of negligence and deceptive marketing by failing to prevent the scam application from being distributed on its platform.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, claim they were tricked into downloading the fake app, which instructed them to enter their cryptocurrency seed phrases. After doing so, their Bitcoin holdings were transferred to wallets controlled by scammers. According to the lawsuit, Ramirez lost approximately $875,000, Ellis lost around $840,000, and Delgado lost roughly $120,000. The alleged thefts occurred between May and August of 2025.

The lawsuit centers on Apple's marketing of the App Store as a "safe and trusted" marketplace. The complaint argues that consumers relied on these assurances, believing Apple's review process would block malicious software. The legitimate Sparrow Wallet is a desktop application available for...