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TLDR
A federal lawsuit alleges that Apple promoted a fake version of the Sparrow Wallet crypto app on its App Store, draining roughly $1.8 million from three victims who entered their recovery phrases. The genuine developer had warned Apple for...
How it works
A federal lawsuit alleges that Apple promoted a fake version of the Sparrow Wallet crypto app on its App Store, draining roughly $1.8 million from three victims who entered their recovery phrases. The genuine developer had warned Apple for...
Red flags
- : A wallet app asks for your 12 or 24 word recovery phrase after initial setup (a legitimate wallet does not need it again). The app is listed as a mobile version but the real developer only ships desktop software. The listing appears in curated crypto collections despite prior impersonation reports
What to do
- 1: Only download wallet apps using links from the developer's official website. Verify the developer actually publishes an iPhone version before installing. Never re enter your seed phrase into any app, website, or form assume it is a scam
Source
malwarebytes
Source reviewed by Mythos Forensic Team
https://www.malwarebytes.com/blog/news/2026/07/apple-accused-of-letting-fake-crypto-app-steal-1-8-millionFAQ
Is Fake crypto wallet app on Apple App Store steals 1.8 million dollars via seed phrase theft a real scam pattern?
Yes. Treat the message, call, or payment request as suspicious until you verify it through an official channel.
What are the first warning signs?
: A wallet app asks for your 12 or 24 word recovery phrase after initial setup (a legitimate wallet does not need it again). The app is listed as a mobile version but the real developer only ships desktop software. The listing appears in curated crypto collections despite prior impersonation reports
What should I do first?
: Only download wallet apps using links from the developer's official website. Verify the developer actually publishes an iPhone version before installing. Never re enter your seed phrase into any app, website, or form assume it is a scam
Can LegalAudit check my case?
Yes. Start a free chat and paste the message, link, sender, or payment details for triage.