Apple faces a case filed by three customers who claim to have lost about $1.8 million (roughly Rs. 17.24 crore) when they downloaded a fake Bitcoin wallet from Apple’s App Store. This complaint was filed on Friday in the US District Court for the Northern District of California, and it asserts that Apple has neglected to examine the apps in question despite its claim that the App Store is a reputable place for downloads. MacRumors saw this complaint in a copy of the filing. The people who filed this complaint are James Ramirez, Christopher Ellis, and Jalen Delgado.
Users Allege Counterfeit Wallet App Led to Theft of Bitcoin Holdings
The plaintiffs reportedly said they entered their seed phrases into the fraudulent app, allowing scammers to transfer their Bitcoin. The losses were estimated at $875,000 (roughly Rs. 8.38 crore), $840,000 (roughly Rs. 8.04 crore), and $120,000 (roughly Rs. 1.15 crore) respectively. Sparrow Wallet continues to be operational on Windows, macOS, and Linux platforms. The developer of Sparrow Wallet, Craig Raw, has previously criticised Apple for the wallet’s fake presence in the App Store as a counterfeit version.
Apple, in turn, has informed MacRumors that it has banned apps that pose as Sparrow Wallet and shut down the developer accounts associated with such apps. Apple says that developers and customers can flag any apps that break the guidelines and Apple will act on them.
My attempt to protect users from scam apps on the @AppStore has gotten my Apple Developer account flagged for termination – ironically, for “dishonest activity”.
Unless it’s reversed by June 30, all new installs of Sparrow Wallet will fail, and development on macOS will end.… https://t.co/DVLQ0jJkF1
— Craig Raw :bird: (@craigraw) June 22, 2026
“As part of a sustained marketing campaign, Apple has positioned itself, its products and services, as offering a level of security and trustworthiness superior to any competing technology company,” the new filing further states. “This includes assurances about the safety of applications distributed through its App Store. By retaining exclusive control over which apps are permitted on Apple devices, Apple has structured its platform to ensure that consumers depend entirely on its promise of safety and reliability.”
The company also reportedly pointed to its last analysis of its ecosystem, which showed that in 2025 it blocked over 371,000 apps that were duplicates of other apps, spam, or misleading to the user in some other way. “Before any app makes its way onto the App Store, it is vetted by a member of Apple’s App Review team, all of whom are deeply familiar with the App Review Guidelines, and focused on ensuring apps meet Apple’s standards for quality and safety. On average, this team reviews nearly 150,000 app submissions each week, helping bring new apps and updates to the App Store.”
The second quarter of 2026 is already the most hacked quarter on record in terms of the number of attacks, with 83 hacks of crypto protocols, per analysis from market insights provider Unfolded based on data from DefiLlama. KelpDAO’s $293 million (roughly Rs. 2,774 crore) hack and Drift Protocol’s $280 million (roughly Rs. 2,652 crore) exploit were the largest incidents of the quarter.
