Apple is facing a lawsuit from three customers who lost a combined $1.8 million through a fake Sparrow Wallet app in the App Store, according to a complaint filed in California federal court on Friday. The plaintiffs allege Apple violated California's Consumers Legal Remedies Act by failing to adequately review apps despite marketing the store as "a safe and trusted place."

The victims — James Ramirez, Christopher Ellis, and Jalen Delgado — had Bitcoin worth approximately $875,000, $840,000, and $120,000 stolen from May to August 2025. Sparrow Wallet is only available on desktop platforms, but scammers released fraudulent iOS lookalikes that wiped users' accounts.

The complaint states Apple took little action even after fraud reports, and fake apps remain in the store. Developer Craig Raw previously criticized Apple's slow response; his attempt to submit a placeholder warning app led to his developer account being flagged for termination, a decision Apple later reversed.

Plaintiffs seek damages including full reimbursement. The case highlights ongoing concerns about App Store review processes and cryptocurrency scam prevention.