Apple Faces Lawsuit Over $1.8M Bitcoin Wallet Scam Losses

Three users sue Apple for failing to block fake Sparrow Wallet apps, citing security review loopholes that led to significant Bitcoin asset theft.

Woofun AI reports that Apple is facing a lawsuit in the Northern District of California Federal Court for allegedly failing to prevent cryptocurrency scam apps on the App Store. Three plaintiffs claim they lost over $1.8 million in Bitcoin after downloading counterfeit versions of 'Sparrow Wallet,' with individual losses of approximately $875,000, $840,000, and $120,000.

The lawsuit argues that Apple's touted security review mechanisms contained loopholes, allowing these fraudulent apps to impersonate the legitimate service, which is not available on iOS. Plaintiffs seek recovery of losses and additional compensation, demanding stricter risk warnings. Apple stated that impersonation violates App Store rules and confirmed no such counterfeit app is currently listed, noting its review team rejected over 371,000 deceptive submissions in 2025.