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

Summary
Three customers have filed a lawsuit against Apple alleging 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, claims Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace. 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 $875,000, $840,000 and $120,000, respectively, during 2025. The complaint references the legitimate Sparrow Wallet, which is available on Windows, macOS and Linux but has no official iOS app. Its developer, Craig Raw, has previously criticized Apple over fake versions of the app appearing in the App Store.
Key points
- The lawsuit alleges Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace.
- Three customers, James Ramirez, Christopher Ellis and Jalen Delgado, allege they lost a combined $1.8 million after entering seed phrases into a fake app.
- The plaintiffs reported individual losses of $875,000, $840,000 and $120,000 during 2025.
- The legitimate Sparrow Wallet has no official iOS app and is available on Windows, macOS and Linux.
- Apple stated it has removed apps impersonating Sparrow Wallet and terminated developer accounts linked to those apps.
Timeline
Lawsuit filed in the US District Court for the Northern District of California
Plaintiffs reported their individual losses of $875,000, $840,000 and $120,000
“Apple told MacRumors that it has removed apps impersonating Sparrow Wallet and terminated developer accounts linked to those apps.”
Background
The legitimate Sparrow Wallet has no official iOS app and is available on Windows, macOS and Linux.
Why it matters
The lawsuit alleges Apple failed to adequately review and monitor apps despite promoting the App Store as a trusted marketplace.