TL;DR
Apple is facing a new legal challenge after three customers say they collectively lost more than $1.8 million in Bitcoin through a fraudulent wallet app they downloaded from the App Store. The lawsuit, filed in the US District Court for the Northern District of California, argues that the company failed to properly review and monitor apps despite promoting its marketplace as a safe and trusted environment.
According to the complaint, the plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado downloaded what appeared to be a legitimate Sparrow Wallet app on iOS. The real Sparrow Wallet is only available on Windows, macOS, and Linux, but scammers have repeatedly published fake versions in the App Store. After entering their seed phrases, the plaintiffs saw their Bitcoin transferred to private wallets controlled by scammers, resulting in losses of approximately $875,000, $840,000, and $120,000 between May and August of 2025.
The filing claims this fraud was made possible because Apple cultivated consumer trust through years of marketing the App Store as a uniquely safe place to download apps. The plaintiffs argue that Apple violated California’s Consumers Legal Remedies Act and other laws by failing to prevent or quickly remove fraudulent listings.
Sparrow Wallet developer Craig Raw has publicly criticized Apple for allowing fake versions of his app to remain available even after multiple reports. In early 2024, Raw noted that a scam app was still live weeks after being flagged. He later attempted to submit a placeholder app clarifying that Sparrow Wallet is a desktop product, but his Apple Developer account was temporarily flagged for termination before the company reversed its decision. The lawsuit also alleges that Apple often took little to no action when victims reported fraud and that additional fake Sparrow Wallet apps remain accessible. The plaintiffs are seeking damages, including reimbursement of all stolen funds.
In response to inquiries, Apple said it has removed apps impersonating Sparrow Wallet and terminated developer accounts associated with those listings. The company added that developers can submit intellectual property disputes and customers can report scams directly. Apple also highlighted broader enforcement efforts, including terminating 193,000 developer accounts over fraud concerns and preventing more than $2.2 billion in potentially fraudulent transactions in 2025.
