The complaint filed in the Northern District of California describes how 1.8 million dollars in bitcoin were stolen through a fraudulent app that remained on the App Store despite reports from the original developer.
Apple was sued on 25 July 2026 by three users who claim to have collectively lost approximately 1.8 million dollars in bitcoin after downloading a counterfeit version of Sparrow Wallet from the App Store. The complaint was filed with the US District Court for the Northern District of California.
The three plaintiffs – James Ramirez, Christopher Ellis and Jalen Delgado – allege they entered their seed phrases into the fraudulent app, allowing the scammers to transfer their bitcoin. According to the complaint, losses amount to approximately 875,000, 840,000 and 120,000 dollars respectively, all occurring during 2025.
Sparrow Wallet is available on Windows, macOS and Linux, but no official iOS version exists. Its developer, Craig Raw, had already publicly reported the presence of fake apps impersonating Sparrow on the App Store. The complaint contests Apple’s failure to exercise adequate review over distributed apps, despite the company promoting the App Store as a trusted marketplace.
Apple told MacRumors it had removed the apps impersonating Sparrow Wallet and closed the developer accounts associated with those apps. The company added that both developers and users have tools available to report applications that violate its guidelines, and that measures are taken against apps that do not comply with App Store rules.
At the time the complaint was filed, Apple had already removed the apps in question and closed the related developer accounts, according to statements the company made to MacRumors.
