Apple is facing a lawsuit from three users who allegedly lost $1.8 million in <a href="https://cryptoz7.com/a-tactical-edge-for-bitcoin-amplify-premieres-bnav/” title=”A Tactical Edge for Bitcoin: Amplify Premieres BNAV”>Bitcoin through a fake Sparrow Wallet app.
Three crypto users have sued Apple after allegedly losing a combined $1.8 million through a fake Bitcoin wallet downloaded from the App Store.
The complaint, filed July 24 in the U.S. District Court for Northern California, says the app impersonated Sparrow Wallet, a legitimate Bitcoin wallet available only for desktop computers, not iPhones.
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James Ramirez, Christopher Ellis and Jalen Delgado say they downloaded the app between May and August 2025 and entered their seed phrases. Scammers then transferred their BTC▲$62,630.00 away. Ramirez allegedly lost about $875,000, Ellis $840,000 and Delgado $120,000.
Ramirez says he lost 7.4 BTC on July 25 and immediately reported the fraudulent app to Apple. Yet Ellis allegedly found and downloaded the same app on Aug. 3, just over a week later, before losing his funds.
Users Blame Apple’s Safety Claims
The plaintiffs argue that they trusted the app because Apple presents the App Store as a controlled marketplace where software is reviewed for security and fraud.
They accuse Apple of negligence, fraud and violations of consumer-protection laws, saying it failed to properly screen the app or warn users that fake crypto wallets could still pass its review process. They are seeking reimbursement, punitive damages and changes to Apple’s vetting and warning systems.
Apple told MacRumors, a news site covering everything Apple, that it quickly removed apps impersonating Sparrow Wallet and terminated the associated developer accounts.
In 2021, five users reported losing a combined $1.6 million through a fake app impersonating Trezor, a hardware-wallet maker. In April of this year, Kaspersky found 26 more malicious apps targeting seed phrases and private keys while posing as popular crypto wallets.
