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Apple Faces Lawsuit Over $1. 8M Crypto Scam
Northern California, USATuesday, July 28, 2026
A lawsuit filed in the U.S. District Court for Northern California accuses Apple of negligence after a counterfeit “Sparrow Wallet” app slipped through the App Store’s review process. Three users claim they were deceived into installing the fake app, transferred their Bitcoin to it, and lost a combined total of over $1.8 million.
The Allegations
| Plaintiff | Amount Lost |
|---|---|
| James Ramirez | ~$875,000 |
| Christopher Ellis | ~$840,000 |
| Jalen Delgado | ~$120,000 |
The plaintiffs argue that Apple’s marketing promises a safe app ecosystem were violated when the fraudulent wallet remained available on the App Store. They contend that Apple’s claim of “tight control” and higher security than rivals is misleading.
Key Points in the Complaint
- Fraudulent App Allowed: The lawsuit states Apple knowingly kept a fake Sparrow Wallet app on the platform.
- Criticism from Creator: Craig Raw, creator of the legitimate Sparrow Wallet, publicly criticized Apple for permitting counterfeit versions.
- Demanding Justice: Plaintiffs seek a jury trial, restitution of lost funds, additional damages, and a mandatory warning for users about platform risks.
Note: This article is a summary of the lawsuit as reported. For legal advice or updates, consult official court documents and professional counsel.
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