Apple faces a lawsuit from three customers who allege they lost a combined $1.8 million after downloading a counterfeit Bitcoin wallet application from the App Store. The complaint was filed on Friday in the United States District Court for the Northern District of California.

The plaintiffs, James Ramirez, Christopher Ellis and Jalen Delgado, contend that Apple failed to conduct sufficient review and ongoing monitoring of applications despite marketing the App Store as a secure marketplace. They state that they entered their seed phrases into the fraudulent application, enabling scammers to transfer their Bitcoin holdings. The individual losses are reported as approximately $875,000, $840,000 and $120,000, respectively, and occurred during 2025.

The legitimate Sparrow Wallet is available only for Windows, macOS and Linux platforms and has no official iOS version. Its developer has previously raised concerns about counterfeit versions appearing in the App Store.

Apple has removed applications impersonating Sparrow Wallet and terminated the associated developer accounts. The company maintains that developers and users may report applications that breach its guidelines and that it acts against those that fail to comply with App Store rules.