Apple sued over fake Bitcoin wallet app

The update

A lawsuit alleges Apple kept a fake Bitcoin wallet app on its App Store for more than a week after a user reported losing $875,000, allowing another user to lose approximately $840,000. Three plaintiffs claim to have lost a combined $1.84 million after downloading the fraudulent app impersonating Sparrow Wallet and entering their Bitcoin seed phrases.

Why it matters

This case raises questions about Apple’s App Store vetting process and the company’s responsibility for fraudulent applications. The lawsuit argues that Apple’s marketing led users to believe apps in its marketplace were thoroughly vetted and safe. This isn’t the first time Apple has faced such allegations, though a previous 2021 case was dismissed when a judge ruled Apple couldn’t be held liable for app content it didn’t create.

What to watch

Whether Apple can be held liable for the full $1.8 million in losses. How Apple’s App Store security protocols respond to this incident. If other users were affected by the fake wallet app. The official Sparrow Wallet is desktop-only and has no official iOS app.

Sources

• coindesk.com — Details about the lawsuit and Apple's response
• cointelegraph.com — Additional information about the plaintiffs and Sparrow Wallet background