Apple is facing a lawsuit alleging negligence in its App Store security after three users lost a combined $1.8 million (approximately £1.4 million) to a fraudulent cryptocurrency wallet app. Filed on Friday in the US District Court of Northern California, the complaint argues that Apple's marketing of the App Store as a safe, tightly controlled platform gave users false confidence, directly challenging one of the company's key arguments against opening its ecosystem to sideloading and third-party app stores. The case adds to scrutiny of Apple's app review process at a time when regulators are pressing for looser platform controls.

The three plaintiffs downloaded an app called Sparrow Wallet, despite the genuine Sparrow Bitcoin wallet not being available on iOS, and lost funds after transferring their Bitcoin into it: James Ramirez lost roughly $875,000, Christopher Ellis around $840,000, and Jalen Delgado about $120,000. The lawsuit also cites public criticism from the real Sparrow Wallet's creator, Craig Raw, who said Apple had allowed fake versions of his app to remain listed. The plaintiffs are seeking a jury trial, compensation for their losses, and clearer warnings about App Store risks. Apple declined to comment directly on the suit but said impersonation apps violate its guidelines and are swiftly removed, noting there are currently no Sparrow Wallet copycats live, and that it rejected over 371,000 submissions in 2025 for copying other apps, spam or misleading users.