Apple sued over fake App Store crypto wallet app stealing $1.8M in Bitcoin

Apple is being sued by three individuals who lost approximately $1.8 million in Bitcoin after downloading a fraudulent Sparrow Wallet app from the App Store. The fake application impersonated the legitimate desktop-only Sparrow Wallet software and tricked users into disclosing their seed phrases, enabling theft of cryptocurrency. Plaintiffs allege Apple failed to monitor app submissions despite prior warnings, and promoted the malicious app through curated collections. The legitimate Sparrow Wallet developer had previously warned Apple about impersonation attempts and attempted to submit a placeholder app to prevent further fraud.

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