Apple faces $1.8M Bitcoin wallet lawsuit

• Apple (NASDAQ:AAPL) is facing a lawsuit after three users alleged they lost a combined $1.8 million through a fake Bitcoin (CRYPTO:BTC) wallet app.
• The complaint alleges a fraudulent Sparrow Wallet app passed Apple's App Store review process and stole users' Bitcoin.
• The plaintiffs are seeking damages and claim Apple failed to remove the fake app despite reports about it.

Apple (NASDAQ:AAPL) is facing a lawsuit after three users alleged they lost a combined $1.8 million in Bitcoin (CRYPTO:BTC) through a fake Sparrow Wallet app downloaded from the App Store.

The complaint alleges Apple failed to properly review and monitor apps despite promoting the App Store as a trusted place to download software.

The plaintiffs alleged Apple failed to warn users that fake Sparrow Wallet apps had appeared on the App Store and posed a risk of cryptocurrency theft.

The lawsuit claims James Ramirez, Christopher Ellis and Jalen Delgado lost about $875,000, $840,000 and $120,000 after entering wallet recovery phrases into the fake app.

Apple said it removed apps impersonating Sparrow Wallet and terminated the related developer accounts, and following the announcement Apple shares were little changed at about US$214.

Sparrow Wallet is only available on Windows, macOS and Linux, and its developer has repeatedly warned users that there is no official iPhone version.

The lawsuit follows another fake cryptocurrency wallet incident this year after Apple removed a counterfeit Ledger Live app linked to about $9.5 million in reported crypto losses.

At the time of reporting, Bitcoin price was $64,406.19.