Key facts
- Apple is being sued for alleged negligence in its App Store security measures.
- Three plaintiffs claim they lost over $1.8 million to a fraudulent crypto wallet app.
- The app was a fake version of Sparrow Wallet, which does not have an official iOS app.
- The lawsuit argues Apple's exclusive control over app distribution creates a dependency on its promised safety.
- Plaintiffs are seeking trial by jury to recover losses and compel Apple to provide risk warnings.
Apple is facing a federal lawsuit from three customers who allege the company's negligence in vetting apps on its App Store led to them losing a combined total of over $1.84 million in Bitcoin. The plaintiffs downloaded a fraudulent version of the Sparrow Wallet, which does not have an official iOS application, and subsequently had their funds transferred by scammers.
The complaint, filed July 24 in the U.S. District Court for the Northern District of California, asserts that Apple's tightly controlled App Store, which it promotes as secure, failed to protect users. James Ramirez claims he lost 7.4 BTC (worth approximately $875,000 at the time) after reporting the app to Apple on July 25, 2025. Christopher Ellis allegedly lost about $840,000 after installing the app on August 3, 2025. Jalen Delgado lost 1.05 BTC, then worth roughly $120,000, after relying on Apple's representations of safety.
Craig Raw, the creator of the official Sparrow Bitcoin Wallet, had previously warned in January 2024 that an impersonator remained available on the App Store despite being reported to Apple weeks earlier. The lawsuit alleges Apple ranked the fraudulent application and included it in curated cryptocurrency app collections. The plaintiffs are seeking a jury trial to recover their losses and compel Apple to implement clearer risk warnings for App Store users.
Apple stated that it has removed apps impersonating Sparrow Wallet and terminated associated developer accounts, emphasizing that such actions violate its guidelines. The company also highlighted its efforts in rejecting more than 371,000 copycat, spam, or misleading submissions last year and stopping over $2.2 billion in potentially fraudulent transactions.