Apple is facing a new lawsuit after three users lost a total of $1.8 million due to a fake Bitcoin wallet app downloaded from the App Store. The complaint filed in the California federal court alleges that although the company marketed the store as a safe environment, it did not properly inspect its practices.

The application that the plaintiffs downloaded and used under the name Sparrow Wallet actually has nothing to do with the real Sparrow Wallet. While the real Sparrow Wallet only works on Windows, macOS and Linux platforms, there is no official version for iOS.

Allegations of Security Neglect and Victimization

The legal document states that users’ accounts were emptied and their crypto assets were transferred to the scammers’ wallets. Plaintiffs named James Ramirez, Christopher Ellis and Jalen Delgado state that they lost a total of $1.8 million worth of Bitcoin between May and August 2025.

Plaintiffs argue that Apple has exploited users’ faith by marketing the App Store as a place of faith for more than a decade. The complaint emphasizes that despite fraud reports, Apple mostly remains inactive and invalid applications continue to remain in the store.

Developers’ Warnings and Apple’s Response

Real Sparrow Wallet developer Craig Raw states that he repeatedly warned Apple about invalid applications, but had difficulty receiving a response. In a post in January 2024, Raw stated that the reported fraudulent applications continued to remain in the store.

Last month, Raw announced that it was blocked by Apple when it tried to upload a notification application to the store to warn users. Apple initially suspended the developer’s account for dishonest activity, but later reversed the decision.

The plaintiffs demand compensation for the financial damage they suffered and for Apple to be punished for not fulfilling its responsibilities.

Do you think Apple is taking sufficient precautions to prevent such fraud attempts in the App Store?