Apple sued over alleged crypto wallet scam apps on the App Store

Apple has been sued in the U.S. District Court for the Northern District of California over allegations that it failed to stop fraudulent cryptocurrency apps distributed through the App Store. Three users claim Apple’s review process did not prevent a fake app posing as the bitcoin wallet Sparrow Wallet from being listed, even though the official Sparrow Bitcoin Wallet is not available on iOS. According to the complaint, the three users transferred bitcoin into the fake app and suffered combined losses of more than $1.8 million, including about $875,000, $840,000 and $120,000 respectively. The plaintiffs argue that Apple has long promoted the App Store’s strict review standards and closed ecosystem as a security advantage, and should therefore bear responsibility for fraudulent apps hosted on the platform. The lawsuit also cites public criticism from the founder of Sparrow Bitcoin Wallet. The plaintiffs are seeking a jury trial, recovery of losses, additional damages, and stronger App Store risk warnings and security disclosures. Apple said impersonating other apps violates App Store rules, that it removes such apps quickly, and that no Sparrow Wallet impersonation app is currently on the App Store.