Apple is facing a lawsuit filed in the US District Court for the Northern District of California after three plaintiffs said a fake Sparrow Wallet app on the App Store cost them more than US$1.8 million in bitcoin.

The plaintiffs, James Ramirez, Christopher Ellis, and Jalen Delgado, said they lost about US$875,000, US$840,000, and US$120,000, respectively.

They are seeking a jury trial, reimbursement, damages, and warnings or disclosures about App Store risks.

The complaint alleges negligence and says Apple violated California’s Consumers Legal Remedies Act and other laws by failing to adequately review and monitor apps while marketing the App Store as a safe, trusted marketplace.

It also cites criticism from Sparrow creator Craig Raw, who said the real wallet has no official iOS version and that scam copycat apps remained on the App Store despite reports.

Apple said impersonation apps violate its guidelines, which say every app is reviewed, and said there are currently no Sparrow Wallet copycats on the store.

The company also said it rejected more than 371,000 submissions in 2025 that copied other apps, were spam, or otherwise misled users.

🔗 Source: TechCrunch