Three users lost a combined $1.835 million after downloading fake Sparrow Wallet applications from the App Store. James Ramirez, Christopher Ellis and Jalen Delgado are suing Apple in a California federal court, arguing that the company marketed its app store as safe and secure while allowing these fraudulent copies to pass through its review process. The real Sparrow Wallet never had an iOS application, yet scammers successfully impersonated it and harvested seed phrases from victims before draining their Bitcoin wallets. Developer Craig Raw had warned Apple as early as January 2024 about applications using Sparrow’s identity, without success. Apple claims it removed the infringing apps and blocked over $2.2 billion in potentially fraudulent transactions in 2025.
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