Apple Sued After Fake iPhone Wallet App Drained $1.8M in Bitcoin

Apple is facing a California federal lawsuit after three Bitcoin holders alleged a counterfeit Sparrow Wallet app on the App Store stole a combined $1.8 million in crypto. The complaint says the victims entered seed phrases into the fake app, enabling losses of 7.4 BTC ($875,000), $840,000, and 1.05 BTC ($120,000). The lawsuit accuses Apple of fraud, negligent misrepresentation, and strict products liability, arguing the company failed to remove or warn users about the scam and may have even promoted it in curated crypto collections. The case highlights growing concern over app-store security and the risks of impersonation scams in crypto, which could pressure Apple to tighten review and fraud-detection practices. The article also notes Sparrow Wallet is desktop-only, and its developer has warned about copycat apps since January 2024.