Apple sued after users allege fake Sparrow Wallet app stole $1.8 million
Summary
Three plaintiffs allege a fake Sparrow Wallet app on Apple’s App Store stole about $1.8 million in cryptocurrency after they entered their seed phrases. Apple says it removed impersonating apps and terminated associated developer accounts.
Key points
- Three named plaintiffs allege they lost about $1.8 million in cryptocurrency after downloading a fraudulent Sparrow Wallet app from Apple’s App Store.
- The plaintiffs say the app impersonated the legitimate wallet and prompted them to enter their seed phrases.
- The complaint alleges Apple had received earlier warnings about fake Sparrow Wallet apps and did not adequately review or monitor the listings.
- The plaintiffs seek reimbursement and damages, and ask the court to require improved fraud detection and warnings about cryptocurrency app risks.
- Apple says it removed apps impersonating Sparrow Wallet and terminated the associated developer accounts.
Article Details
- Victim Organization
- Three individual cryptocurrency users (the plaintiffs)
- Incident Type
- Alleged fake cryptocurrency wallet app impersonation and seed-phrase theft resulting in cryptocurrency transfers
- Incident Date
- 2025-05-01
- Data Types Exposed
- Cryptocurrency wallet seed phrases
- Affected Records
- Three plaintiffs reportedly lost cryptocurrency after entering seed phrases into the fraudulent app.
- Affected Data Size
- Approximately $1.8 million in Bitcoin and other cryptocurrency, according to the plaintiffs.
- Operational Impact
- The plaintiffs allege that cryptocurrency was transferred to wallets controlled by scammers after they entered their seed phrases into the fake app.
- Ransom Or Extortion
- None reported.
- Claim Status
- alleged
People
Christopher EllisPlaintiff who alleges he downloaded the fraudulent app, entered his seed phrase, and lost approximately $840,000 in cryptocurrency.Craig RawDeveloper of the legitimate Sparrow Wallet who reportedly warned Apple and users about fraudulent apps impersonating Sparrow Wallet.Jalen DelgadoPlaintiff who alleges he downloaded the fraudulent app, entered his seed phrase, and lost 1.05033242 Bitcoin.James RamirezPlaintiff who alleges he downloaded the fraudulent app, entered his seed phrase, and lost 7.4 Bitcoin.
Vendors
Products
App Storealso shared a more recent attempt by Raw to protect users from the fake Sparrow applications on the Apple App Store by submitting an unpublished placeholder app that explained that mobile apps using the “SparrowSparrow WalletThree plaintiffs allege they lost about $1.8 million in Bitcoin after downloading a fake Sparrow Wallet app from Apple’s App Store and entering their seed phrases.