Apple faces lawsuit over alleged $1.8M Bitcoin wallet app losses

Apple is facing a lawsuit filed by three customers who claim they lost a total of $1.8 million after downloading a fraudulent Bitcoin wallet app from the App Store. The complaint was submitted to the US District Court for the Northern District of California and accuses Apple of failing to properly review and monitor apps despite marketing the App Store as a trustworthy platform. The plaintiffs, named James Ramirez, Christopher Ellis, and Jalen Delgado, reportedly suffered Bitcoin losses of approximately $875,000, $840,000, and $120,000 respectively during 2025 after entering their seed phrases into the fake app, allowing scammers to steal their funds.

The fraudulent app was reportedly an imitation of Sparrow Wallet, a legitimate Bitcoin wallet that is available on Windows, macOS, and Linux but has no official iOS version. Sparrow Wallet’s developer, Craig Raw, has previously criticized Apple for the presence of fake versions of his app on the App Store. In response, Apple told MacRumors that it has removed apps impersonating Sparrow Wallet and terminated the developer accounts associated with those fake apps. Apple also noted that developers and users can report problematic apps, and the company takes action against those violating its App Store guidelines.

This lawsuit highlights concerns over the security and oversight of apps on Apple’s marketplace, especially involving cryptocurrency wallets where users can suffer significant financial losses. The plaintiffs argue that Apple’s inadequate app screening and monitoring contributed to their losses, raising questions about the effectiveness of Apple’s protections for users in the crypto space.