People who use Bitcoin have lost a total of $1.8 million after mistakenly downloading fake mobile apps. These apps pretended to be a popular Bitcoin wallet, but the real wallet is only available for computers.
A lawsuit claims Apple allowed fake versions of the Sparrow Wallet app to appear in its App Store, despite advertising the store as a secure place to download software. The plaintiffs, who are victims of this, allege Apple didn’t properly check and remove these fraudulent apps.
People reported losing their cryptocurrency because they accidentally typed their secret recovery phrase into a fraudulent copy of the Sparrow Wallet app, giving thieves access to their funds.
Craig Raw, the creator of Sparrow, began cautioning users in 2024 about fake versions of the app appearing online. Because Sparrow is designed only for desktop computers, any claim of a mobile version would immediately raise red flags and likely be a scam.
James Ramirez claims he lost around $875,000 worth of Bitcoin after a fake wallet was used to steal his funds, and says he immediately contacted Sparrow and Apple. Christopher Ellis reported a similar experience days later, losing approximately $840,000 in cryptocurrency to the same type of scam.
Jalen Delgado claims to have lost approximately $120,000 worth of Bitcoin in May 2025 when he unknowingly downloaded a counterfeit version of the Sparrow Wallet.
Security experts recently discovered 26 fake digital wallets designed to look like popular brands like MetaMask and Ledger. These wallets often steal users’ sensitive information – specifically their recovery phrases – using deceptive methods.
The official Sparrow Wallet is only available for desktop computers running Windows, macOS, or Linux. There isn’t an official version for phones or tablets.
Apple has taken down the fraudulent Sparrow apps and banned the developers responsible, highlighting its ongoing efforts to prevent and detect scams.
The people suing claim that Apple’s statements about the security of the App Store led them to believe fake apps were legitimate, and they are asking the court for financial compensation to cover their losses, plus legal costs.
Even with a lot of marketing, Apple hasn’t carefully checked the apps available in the App Store. This lack of oversight has let criminals take advantage of Apple’s good name and steal money from customers. These scams wouldn’t have been possible, or successful, without Apple’s knowledge or help.
2026-07-29 12:22