Apple has been sued in the U.S. District Court for the Northern District of California over allegations that it failed to effectively prevent cryptocurrency scam apps from appearing on the App Store.
Three users allege that gaps in Apple’s security review process led them to download a fake crypto wallet app, causing combined losses of more than $1.8 million. The complaint says the app impersonated the bitcoin wallet "Sparrow Wallet," while the official Sparrow Bitcoin Wallet is not available on iOS.
Users say they lost bitcoin after sending funds to the fake app
According to the lawsuit, the three users transferred bitcoin into the fake app and then suffered asset losses.
- One user lost about $875,000.
- Another lost about $840,000.
- A third lost about $120,000.
The plaintiffs argue that Apple has long promoted the App Store’s strict review process as a security advantage, saying its closed ecosystem reduces the risk of malware and scams. On that basis, they say Apple should be held responsible for fraudulent apps distributed on the platform.
Lawsuit cites public criticism from Sparrow’s founder
The lawsuit also cites public criticism from the founder of Sparrow Bitcoin Wallet, saying Apple had previously allowed copycat apps to appear on the App Store.
The three plaintiffs are asking for a jury trial. They are also seeking to recover their losses, obtain additional damages, and require Apple to add stronger App Store risk warnings and security disclosures.
Apple response and prior review data
Apple said impersonating other apps violates App Store rules and that the company removes such apps quickly. It also said there is currently no Sparrow Wallet impersonation app on the App Store.
Apple previously disclosed that in 2025, its review team rejected more than 371,000 app submissions tied to impersonation, spam, or efforts to mislead users.