Fake Crypto Wallet on App Store Triggers $1.8M Lawsuit Against Apple

Apple is facing a lawsuit in California after three users lost a combined $1.8 million to a fraudulent cryptocurrency wallet app on the iOS App Store. The malicious application, which masqueraded as the desktop-only Sparrow Wallet, prompted users to enter their seed phrases, allowing attackers to drain their Bitcoin. The plaintiffs, who lost amounts of $875,000, $840,000, and $120,000, are suing Apple for false advertising and consumer law violations, alleging that the company failed to maintain a safe marketplace and even placed the fake app in curated collections.

Official developer Craig Raw testified that he has spent years unsuccessfully attempting to flag copycat applications. He noted that Apple even threatened to suspend his account when he tried to upload a warning app to alert users. While Apple declined to comment on the litigation, representatives stated that the fraudulent app has been removed and the associated developer accounts have been terminated. Apple highlighted its security efforts, noting it blocked over $2.2 billion in fake app transactions and shut down 193,000 malicious accounts in 2025.

This incident follows a similar recent event where a fake version of Ledger Live resulted in $9.5 million in losses for Mac users. The current plaintiffs are seeking Bitcoin reimbursement, punitive damages, and a court order requiring Apple to implement explicit warnings for fake applications within the App Store.

(Source：Coinpedia)