Apple is facing a new lawsuit after three customers lost a combined $1.8 million falling victim to a fake Bitcoin wallet app in the App Store. The complaint claims Apple violated California’s Consumers Legal Remedies Act by failing to review and monitor apps, despite marketing the App Store as a safe and trusted place.

Plaintiffs trusted a Sparrow Wallet app downloaded from the App Store, believing it legitimate, but it was a fraudulent spoof designed to steal Bitcoin. Sparrow Wallet is only available on Windows, macOS, and Linux; scammers released lookalike apps that trick users into surrendering control of their funds.

Plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado suffered losses of approximately $875,000, $840,000, and $120,000 from May to August 2025. Even when victims reported fraud, the lawsuit alleges Apple took little action, and other fake Sparrow apps remain in the store.

Apple responded by removing impersonating apps and terminating developer accounts. Craig Raw highlighted Apple’s slow response, and Apple reversed a termination for a placeholder app. Apple has terminated 193,000 developer accounts over fraud concerns and prevented over $2.2 billion in potentially fraudulent transactions in 2025.