Apple faces a lawsuit over a crypto wallet scam on the App Store, with users losing more than $1.8 million.

Apple is being sued by the U.S. District Court for the Northern District of California over allegations it failed to effectively prevent cryptocurrency scam apps on the App Store. Three users allege Apple’s security review mechanisms were flawed, leading them to download fake crypto wallet apps that resulted in total losses exceeding $1.8 million. The lawsuit claims the apps in question impersonate the Bitcoin wallet "Sparrow Wallet", while the official Sparrow Bitcoin Wallet is not actually available on iOS. The three users suffered asset losses after transferring Bitcoin to the fake apps: one lost roughly $875,000, another around $840,000, and the third about $120,000. Plaintiffs argue Apple has long marketed its strict App Store review process as a security advantage, claiming its closed ecosystem reduces malware and scam risks, and thus should be held liable for fraudulent apps on the platform. The lawsuit also cites public criticism from the founder of Sparrow Bitcoin Wallet, stating Apple previously allowed imposter apps to appear on the App Store. The three plaintiffs are seeking a jury trial, restitution of their losses plus additional damages, and demanding Apple enhance risk warnings and security disclosures on the App Store. Apple responded that impersonating other apps violates App Store rules, and the company quickly removes such apps, adding that no imposter Sparrow Wallet apps currently exist on the App Store. Apple previously released data showing its review team rejected over 371,000 app submissions in 2025 that involved impersonation, spam, or user deception.