Apple Sued for App Store Cryptocurrency Wallet Scam, Users Lose Over $1.8 Million

BlockBeats News, July 28th, Apple was sued by the Northern District of California Federal Court in the United States for allegedly failing to effectively prevent cryptocurrency scam apps on the App Store. Three users accused Apple's security review mechanism of loopholes, resulting in them downloading fake cryptocurrency wallet apps and losing a total of over $1.8 million.

The lawsuit stated that the apps in question impersonated the Bitcoin wallet 'Sparrow Wallet,' which is not actually available on the official Sparrow Bitcoin wallet on the iOS platform. The three users experienced asset losses after transferring Bitcoin to this fake app, with one losing approximately $875,000, another losing around $840,000, and the third losing about $120,000.

The plaintiffs believe that Apple has long touted its strict App Store review process as a security advantage, claiming that its closed ecosystem can reduce malicious software and fraud risks, and therefore should be held responsible for fraudulent apps on the platform. The lawsuit also cited public criticism from the founder of Sparrow Bitcoin Wallet, stating that Apple had previously allowed counterfeit apps to appear on the App Store.

The three plaintiffs requested a jury trial, seeking to recover losses and additional compensation, while also demanding that Apple increase App Store risk warnings and security disclosures.

Apple responded by stating that impersonating other apps is a violation of the App Store rules, and the company will promptly remove the related apps, noting that there is currently no Sparrow Wallet counterfeit app in the App Store. Apple had previously released data showing that in 2025, its review team rejected over 371,000 app submissions involving counterfeiting, junk information, or user deception.