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Apple sued over fake Bitcoin wallet app that allegedly cost three users $1.8 million

7/28/2026

The security perimeter around self-custodied Bitcoin has become one of the more contested attack surfaces as retail holders increasingly rely on mainstream app stores to source wallet software.

Against that backdrop, Apple now faces a lawsuit from three users who allege a counterfeit version of Sparrow Wallet appeared on the App Store, drained their Bitcoin holdings, and left them with combined losses exceeding $1.8 million.

The alleged scheme The plaintiffs allege a fraudulent application presented itself as Sparrow Wallet, a Bitcoin wallet product, within Apple's App Store.

Once downloaded, the counterfeit app reportedly accessed and emptied users' Bitcoin holdings. Three users have brought the case, with total claimed losses above $1.8 million.

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