Apple Sued Over Crypto Scam in App Store

Three users in the US have filed a lawsuit against Apple, accusing the company of neglecting App Store security measures. According to the lawsuit filed in the US District Court for the Northern District of California, victims lost a total of more than $1.8 million due to a fake cryptocurrency wallet app, reports TechCrunch. reports .

Based on information distributed by ixbt.com and other technology publications, the conflict arose due to fraudulent apps that abused user trust. Victims James Ramirez lost approximately $875,000, Christopher Ellis around $840,000, and Jalen Delgado $120,000. They transferred their cryptocurrencies to a fake copy of the Sparrow Wallet app, which does not actually exist for iOS.

Security Guarantees and Competitive Environment

This lawsuit could undermine Apple's main competitive advantage, in which it claims its platform is safer than competitors'. The company constantly claims that it protects users from fraudsters by establishing strict control over its App Store and preventing third-party app stores.

The lawsuit states that the company promises consumers absolute safety and reliability in its marketing campaigns. However, this incident showed that control on the Apple platform is not sufficient. Plaintiffs claim that the company allowed the distribution of fraudulent apps knowing about their existence in advance.

Expert Criticism and Company Response

Craig Raw, creator of the original Sparrow Bitcoin Wallet, had previously openly criticized Apple for not removing fake apps in a timely manner. The victims are demanding a jury trial to cover the damages caused and to issue clear warnings about App Store security risks.

TechCrunch reports that Apple declined to comment on the lawsuit, but strongly defended its security measures. Company representatives stated that apps mimicking other applications violate its rules and immediate action is taken against such cases.

Apple also recalled, based on its latest analytics, that in 2025 over 371,000 apps that copied other applications, distributed spam, or misled users were rejected. It is noted that there are currently no copies of Sparrow Wallet left in the App Store.