Three iPhone Users Sue Apple Over Fake Sparrow Wallet App That Drains $1.8 Million in Bitcoin
Three iPhone users are suing Apple in federal court, alleging the company’s App Store hosted a fake Sparrow Wallet application that drained $1.8 million in bitcoin after users entered their seed phrases. The complaint, filed July 24 in the Northern District of California, details how the impersonating app asked for private keys and routed the cryptocurrency to attacker addresses.
Sparrow Wallet is a desktop-only program, and the developer has never released a version for iOS, meaning any listing under the name on Apple’s store is counterfeit by design. The plaintiffs advance strict products liability and failure-to-warn claims beyond standard fraud, arguing the App Store ranked the app into curated crypto collections and leveraged Apple’s security marketing to facilitate the theft. The wallet’s developer reported identical fakes starting in January 2024, and Apple stated it removes impersonators quickly and has terminated the associated developer accounts.
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@intcyberdigest‼️ Three iPhone users are suing Apple in federal court for hosting a fake Sparrow Wallet app they say they downloaded from the App Store, alleging a combined $1.8 million in bitcoin was drained after they entered their seed phrases. Sparrow
@bscnewsApple sued over a fake wallet that drained $1.8M in Bitcoin Three plaintiffs filed in California on July 24, alleging an App Store listing impersonating Sparrow Wallet asked for their seed phrases and moved about $1.8M in Bitcoin to attack