Apple has been sued over App Store security after three plaintiffs said they were induced to download a fraudulent crypto wallet app called Sparrow Wallet. According to ChainCatcher, the app’s official version is not available on iOS, and the plaintiffs said their combined losses exceeded $1.8 million.
The lawsuit says Apple knowingly allowed the fake app to remain in the App Store and used its security claims to market against third-party app stores and sideloading. The plaintiffs are seeking a jury trial, damages, and public disclosure of App Store risks.
Apple did not comment on the lawsuit, but said impersonation apps violate its guidelines and are removed quickly. The company said there are currently no Sparrow Wallet impersonation apps in the App Store and that it rejected more than 371,000 app submissions in 2025 for copying or misleading users.