Apple sued over App Store encrypted wallet scam, users lost 1.8 million dollars

According to TechCrunch, Apple has been sued over App Store security issues. Three plaintiffs claim they were induced to download a fraudulent cryptocurrency wallet app, Sparrow Wallet, which is not officially available for iOS. The plaintiffs have incurred losses totaling over $1.8 million—James Ramirez lost approximately $875,000, Christopher Ellis lost about $840,000, and Jalen Delgado lost around $120,000.

The lawsuit accuses Apple of knowingly allowing fraudulent apps to remain in the App Store while using its security promises as a marketing tool to resist third-party app stores and sideloading. The plaintiffs are seeking a jury trial, damages, and public disclosure of App Store risks. Apple has not commented on the lawsuit but stated that counterfeit apps violate its guidelines and will be swiftly removed. Currently, there are no counterfeit versions of Sparrow Wallet in the App Store, and over 371,000 submissions of plagiarized or misleading apps have been rejected in 2025.