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TLDR
Scammers published a fake "Sparrow Wallet" crypto app on Apple's App Store that impersonated the legitimate desktop Bitcoin wallet and tricked at least three users into entering their seed phrases, draining about $1.8 million in BTC. The...
How it works
Scammers published a fake "Sparrow Wallet" crypto app on Apple's App Store that impersonated the legitimate desktop Bitcoin wallet and tricked at least three users into entering their seed phrases, draining about $1.8 million in BTC. The...
Red flags
- A crypto wallet appears in an app store when the legitimate version is desktop only or distributed elsewhere The app asks you to type in your seed phrase / recovery words after installation The developer account has no history, generic branding, or no verifiable link to the official project
What to do
- 1Download wallet apps only from links on the official project website, never from app store search alone Never enter your seed phrase into any app or website — legitimate wallets never ask for it after setup Report suspicious apps to Apple via "Report a Problem" and alert the real wallet developer immediately
Source
bleepingcomputer
Source reviewed by Mythos Forensic Team
https://www.bleepingcomputer.com/news/apple/apple-sued-over-fake-app-store-crypto-wallet-app-stealing-18m-in-bitcoin/FAQ
Is Fake App Store crypto wallet app steals $1.8M in Bitcoin via seed phrase scam 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 crypto wallet appears in an app store when the legitimate version is desktop only or distributed elsewhere The app asks you to type in your seed phrase / recovery words after installation The developer account has no history, generic branding, or no verifiable link to the official project
What should I do first?
Download wallet apps only from links on the official project website, never from app store search alone Never enter your seed phrase into any app or website — legitimate wallets never ask for it after setup Report suspicious apps to Apple via "Report a Problem" and alert the real wallet developer immediately
Can LegalAudit check my case?
Yes. Start a free chat and paste the message, link, sender, or payment details for triage.