Three cryptocurrency investors have filed a federal lawsuit against Apple in the U.S. District Court for the Northern District of California, alleging they lost a combined $1.8 million in Bitcoin through a fake wallet app listed on the App Store. The lawsuit, filed on July 24, accuses Apple of failing to adequately review and monitor apps distributed through its platform.

The plaintiffs claim they trusted the fake app, which impersonated Sparrow Wallet, because Apple markets its App Store as a "safe and trusted place." Users were allegedly prompted to enter their recovery phrases, which were then sent to scammers, allowing them to transfer the victims' Bitcoin. The lawsuit also alleges Apple failed to act even after users and Sparrow Wallet's developer, Craig Raw, reported the fraudulent apps. Apple stated on July 27 that it had removed apps impersonating Sparrow Wallet and terminated a