A lawsuit has been filed against Apple by three plaintiffs who lost a total of approximately $1.8 million due to a fraudulent cryptocurrency app available on the App Store. The app, impersonating the legitimate Sparrow Wallet, tricked users into surrendering control of their Bitcoin assets.

Plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado claim Apple's App Store protections are weak, allowing malicious apps to proliferate. Ramirez reportedly lost around $875,000, Ellis $840,000, and Delgado $120,000. The lawsuit, filed in the U.S. District Court for the Northern District of California, alleges that Apple markets the App Store as a secure platform, and its failure to prevent such scams constitutes misleading practices.

The legal filing demands a jury trial and seeks compensatory damages, interest, and punitive damages for Apple's alleged "reckless and grossly negligent conduct." The plaintiffs also request Apple implement improved procedures to prevent spoof apps and issue corrective advertising. The developer of the legitimate Sparrow Wallet, Craig Raw, has previously documented issues with fake versions appearing on the App Store since 2023.