Apple Sued Over Fake Bitcoin Wallet App That Stole $1.8m

Apple is facing a lawsuit from three users who claim they lost a combined $1.8 million after downloading a fake Bitcoin wallet app from the App Store. The users filed a complaint in the US District Court for the Northern District of California.

According to the lawsuit, the customers believed they were downloading the official Sparrow Wallet app. Sparrow Wallet is available on Windows, macOS, and Linux, but it does not have an iOS version. 

The fake app prompted customers to enter their wallet recovery phrases, which allowed scammers to transfer the victims' Bitcoin to wallets under their control.

The plaintiffs allege that Apple failed to adequately review and monitor apps distributed through the App Store, despite promoting the App Store as a safe and trusted marketplace. The users argued that they relied on those claims when downloading the app and are seeking compensation for their losses.

The developer of Sparrow Wallet has previously warned users that fake versions of the app had appeared on the App Store and said the legitimate wallet has never been available on iOS. Apple said it has since removed the fraudulent apps and terminated the associated developer accounts.

Additionally, security experts warn users to download wallet software only from official sources and to verify whether a wallet is available for their device before entering any recovery phrases or private keys.