Apple sued after users lose $1.8M to fraudulent crypto wallet app on iOS

Three cryptocurrency users are taking Apple to court after losing a combined $1.8 million in Bitcoin to a fraudulent wallet app that slipped through the App Store’s supposedly airtight review process. The lawsuit, filed in California federal court on July 24-25, 2026, argues that Apple’s marketing around App Store safety amounts to false advertising when scam apps can sit unchallenged for months at a time. Here’s the thing. The real Sparrow Wallet doesn’t even have an iOS version. It’s a desktop-only application available on Windows, macOS, and Linux. So anyone who downloaded “Sparrow Wallet” from the App Store was, by definition, downloading a fake. The damage breakdown The three plaintiffs reported individual losses of $875K, $840K, and $120K respectively. The fraudulent app operated from May to August 2025, mimicking the legitimate Sparrow Wallet’s branding and interface closely enough to convince users they were interacting with the real thing. Once users imported or created wallets within the counterfeit app, their funds were quietly redirected to wallets controlled by the scammers. Craig Raw, the developer behind the actual Sparrow Wallet, has reportedly been raising alarms a...