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

The Allegations

Three users allege a fake Sparrow Wallet app on Apple’s App Store drained their Bitcoin holdings, with losses totaling more than $1.8 million. Apple is facing a lawsuit from three customers who say they lost a combined $1.8 million after downloading a fake Bitcoin wallet app from the App Store.

The complaint, filed Friday in the US District Court for the Northern District of California, alleges Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace, according to a copy of the filing obtained by MacRumors.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, said they entered their seed phrases into the fraudulent app, allowing scammers to transfer their Bitcoin. They reported losses of about:

• James Ramirez: ~$875,000
• Christopher Ellis: ~$840,000
• Jalen Delgado: ~$120,000

during 2025, according to the complaint.

Background

Sparrow Wallet is available on Windows, macOS, and Linux. Its developer, Craig Raw, has previously criticized Apple over fake versions of the app appearing in the App Store. The wallet has no official iOS app.

Apple’s Response

Apple told MacRumors that it has removed apps impersonating Sparrow Wallet and terminated developer accounts linked to those apps. The company said developers and users can report apps that violate its guidelines, adding that it takes action against apps that do not comply with App Store rules.

Related: Binance disappears from Google Play in certain EU countries