Apple is facing a new lawsuit from three customers who claim a fraudulent cryptocurrency wallet app, distributed through the App Store, led to the loss of approximately $1.8 million in Bitcoin. The plaintiffs allege that the fake Sparrow Wallet app exploited the absence of an official Sparrow Wallet on iOS, tricking users into divulging their credentials and ultimately transferring their digital assets to cybercriminals.

This incident marks another instance where a scam cryptocurrency app has allegedly bypassed Apple's App Store review process. Previous cases include a fake Trezor wallet app in 2023 and a fraudulent Rabby Wallet app in 2024, with a fake Ledger Live app reportedly stealing over $9.5 million from more than 50 victims.

The lawsuit contends that Apple's assurances of a safe marketplace are contradicted by its failure to adequately review and monitor apps. The plaintiffs are seeking reimbursement for their lost Bitcoin, additional damages, and for Apple to strengthen its review process and provide clearer warnings about fraudulent apps. Apple has stated that it has "taken swift action to remove any apps impersonating Sparrow Wallet" and to terminate associated developer accounts.