Apple Sued Over Fake Crypto Wallet Apps in App Store
Three users have sued Apple in California, alleging the company failed to prevent fraudulent cryptocurrency wallet applications on its App Store, resulting in approximately $1.8 million in losses.
Apple is facing a lawsuit filed by three users who collectively lost around $1.8 million after downloading a counterfeit Bitcoin wallet application from the company's App Store. The plaintiffs claim Apple violated consumer protection laws by failing to adequately vet and monitor applications available on its platform.
The lawsuit, lodged in a federal court in California, accuses Apple of not only promoting the App Store as a secure and trustworthy platform but also of failing in its oversight. Users believed the "Sparrow Wallet" app they downloaded was legitimate due to Apple's assurances, but it turned out to be a fraudulent application designed to steal their Bitcoin holdings.
The genuine Sparrow Wallet is available only for Windows, macOS, and Linux and does not have an iOS version. Scammers created multiple similar fake apps on the App Store that tricked users into surrendering control of their wallets and stealing their assets. According to the plaintiffs, their accounts were emptied and their cryptocurrency assets were transferred to wallets controlled by the fraudsters.
The complaint states that Apple has not acted adequately even when the fraudulent activities were reported. The fake Sparrow Wallet apps remain available on the App Store. The developer of Sparrow Wallet has previously expressed frustration with Apple's slow response to counterfeit applications.