iOS Users Sue Apple Over $1.8M Bitcoin Loss From Fake Sparrow Wallet Apps

Three iOS users file federal suit against Apple for negligence, citing $1.8M Bitcoin losses from fake Sparrow Wallet downloads and delayed takedowns.

Woofun AI reports that three iOS users have initiated a federal lawsuit in California against Apple, alleging negligence regarding the distribution of fraudulent applications. The plaintiffs claim to have lost approximately $1.8 million worth of Bitcoin after installing counterfeit Sparrow Wallet apps from the App Store between May and August 2025. The legal filing asserts that Apple fails to take adequate action following fraud reports, allowing malicious versions to persist. Craig Raw, the developer of Sparrow Wallet, has publicly criticized Apple for its slow response to these fake iterations and its failure to remove them promptly.