Key facts
- Three Bitcoin holders are suing Apple in California federal court.
- The lawsuit alleges a counterfeit Sparrow Wallet app on the App Store led to a combined loss of $1.8 million.
- Plaintiffs claim they entered their seed phrases into the fraudulent app.
- The developer of Sparrow Wallet has previously warned about copycat apps on Apple's App Store.
- The complaint argues Apple failed to adequately warn consumers about fraudulent applications.
Three Bitcoin holders have filed a lawsuit against Apple in a California federal court, alleging that a counterfeit Sparrow Wallet application available on the App Store led to the loss of a combined $1.8 million. The complaint, lodged on July 24, outlines eight charges including fraud and negligent misrepresentation.
According to the filing, each plaintiff entered their seed phrase into the fraudulent app. James Ramirez reportedly lost 7.4 BTC, valued at $875,000, Christopher Ellis lost $840,000, and Jalen Delgado lost 1.05 BTC, worth $120,000. Sparrow Wallet is a desktop-only application and has never released an iOS version, meaning any app listed under its name on the App Store is an impersonation.
Ramirez stated he reported the app and his loss to Apple on July 25, 2025, the day of the incident. Ellis downloaded a similar Sparrow app nine days later. The complaint asserts that Apple has not contacted Ramirez regarding his report, and fraudulent Sparrow apps were still available on the store at the time of filing. The lawsuit further alleges that Apple promoted the fake app, including it in curated cryptocurrency collections.
Craig Raw, the developer of Sparrow Wallet and holder of its U.S. trademarks, has been vocal about copycat malware on Apple's App Store since January 2024. He previously tweeted about a scam version remaining active for weeks after being reported, noting that users had to install the app to report it and advising users to always find download links via the wallet's official website.
Apple declined to comment on the lawsuit but pointed to its ecosystem analysis, which stated it rejected over 371,000 malicious App Store submissions. The company noted that no Sparrow Wallet copycats are currently listed on the App Store. The lawsuit seeks to hold Apple strictly liable for failing to warn consumers, arguing that the company's disclaimers are buried within click-through terms.