Three users have filed a lawsuit against Apple in the U.S. District Court for the Northern District of California, alleging that a fake Sparrow Wallet app downloaded from the App Store resulted in a total loss of approximately $1.835 million in Bitcoin. The case is still in the litigation stage, and the court has not yet ruled on whether Apple should be held liable.
Users claim their mnemonic phrases were stolen.
The lawsuit alleges that the three plaintiffs downloaded the counterfeit app at different times in 2025 and subsequently had their assets stolen. The plaintiffs claim that the app prompted users to enter their wallet mnemonic phrases before transferring Bitcoin to addresses controlled by the attackers.
- Delgado claims losses of approximately $120,000.
- Ramirez claims to have lost 7.4 BTC, equivalent to approximately $875,000.
- Ellis claims losses of approximately $840,000.
The report mentions that Sparrow's official website currently only offers downloads for macOS, Windows, and Linux, and not for iOS. Entering a recovery phrase into the malware means the user has handed control of their wallet to the attacker.
Apple says it has removed the relevant app.
Apple told MacRumors that it quickly removed the app impersonating Sparrow Wallet after discovering the issue and terminated the developer's account. Apple also stated that users can submit issues through the platform's reporting tool, and the company will take action against apps that violate App Store rules.
According to Apple's publicly available rules, apps must not impersonate other services or use other developers' brands without authorization. Apple has long described the App Store as a safe and trustworthy app marketplace. The company also disclosed that in 2025 it blocked more than $2.2 billion in potential fraudulent transactions and rejected more than 2 million problematic app submissions.
The lawsuit focuses on the platform's responsibility.
The plaintiff argues that Apple's claims about the App Store's security led them to believe that apps on the platform had undergone thorough review, thus lowering their guard when downloading and using them. The lawsuit involves consumer protection laws in multiple states, and includes claims of fraudulent statements, negligent statements, concealment of facts, and failure to provide adequate warnings.
However, these allegations are currently based solely on the plaintiff's claims and have not yet been adjudicated by the court. The plaintiff is requesting a jury trial and is seeking recovery of the lost digital assets, compensatory damages, and injunctive relief.
Fake wallet apps keep appearing
Prior to this lawsuit, counterfeit cryptocurrency wallets had appeared multiple times on mainstream app stores. The report mentioned that in April of this year, a fake Ledger Live app on the Apple App Store allegedly stole at least $9.5 million from more than 50 users.
Furthermore, fake Phantom, Rabby, and UniSat apps have also appeared in app store search results or listings. A common tactic is to mimic the interface or brand of well-known wallets and then trick users into entering a recovery phrase. Once the mnemonic phrase is leaked, attackers can take control of the corresponding wallet's assets.
