Apple sued over App Store crypto wallet scam, users lose $1.8 million

On July 28, according to TechCrunch, Apple Inc. is being sued over App Store security issues. Three plaintiffs claim they were tricked into downloading the fraudulent crypto wallet app Sparrow Wallet, whose official version is not available for iOS. The plaintiffs collectively lost over $1.8 million: James Ramirez lost approximately $875,000, Christopher Ellis lost approximately $840,000, and Jalen Delgado lost approximately $120,000. The lawsuit accuses Apple of knowingly allowing fraudulent apps to remain on the App Store and using its security promises as a marketing tactic to resist third-party app stores and sideloading. The plaintiffs are demanding a jury trial, compensation for damages, and public disclosure of App Store risks. Apple declined to comment on the lawsuit but stated that imitation apps violate its guidelines and will be promptly removed. There are currently no imitation Sparrow Wallet apps on the App Store, and over 371,000 app submissions that were copies or misled users were rejected in 2025.