Apple Sued Over $1.8M Crypto Loss From Fake Sparrow Wallet Apps

James Ramirez, Christopher Ellis, and Jalen Delgado allege in their 54-page complaint that the fake apps solicited their wallet seed phrases, effectively granting attackers full control over their assets. Between May and August 2025, the plaintiffs suffered individual losses ranging from $120,000 to $875,000. While the official Sparrow Wallet is designed exclusively for desktop operating systems like macOS, Windows, and Linux, the malicious versions bypassed Apple’s review process to appear on the App Store.

Apple maintains that it removed the impersonating applications and terminated the associated developer accounts immediately upon discovery. The company contends that its App Store remains a secure environment, noting that it blocked over $2.2 billion in fraudulent transactions throughout 2025. However, the plaintiffs argue that Apple’s marketing of the store as a safe and vetted platform induced a false sense of security. The lawsuit seeks a jury trial to address claims of negligence, consumer fraud, and failure to warn, though Apple has yet to file a formal response in the U.S. District Court for the Northern District of California.