Apple is being sued by three iPhone users who say they lost a total of $1.8 million in bitcoin after downloading a fake Bitcoin wallet from the App Store, MacRumors reported on Friday.

The lawsuit was filed in federal court in California. It claims Apple did not do enough to check or remove fake apps from the App Store, even though the company has long promoted it as a safe place to download apps. The three users are asking Apple to repay their losses and provide additional damages.

According to the lawsuit, the victims downloaded an app that looked like Sparrow Wallet, a well-known Bitcoin wallet. However, the app was fake and was allegedly created by scammers to steal users' assets.

The real Sparrow Wallet does not have an app for iPhones. It is only available for Windows, macOS, and Linux computers. The lawsuit says scammers copied the wallet's name and appearance to trick people into believing they were downloading the real app.

After users entered their wallet information into the fake app, the scammers allegedly gained access to their bitcoin and moved it into wallets they controlled.

The lawsuit says James Ramirez lost about $875,000 in bitcoin, Christopher Ellis lost around $840,000, and Jalen Delgado lost about $120,000. The losses happened between May and August 2025 and added up to nearly $1.8 million.

The plaintiffs say they trusted the app because of Apple's reputation. They argue that Apple's advertising made them believe apps in the App Store had been carefully checked before being made available to users.

The complaint also says, "this fraud succeeded precisely because Apple exploited the consumer trust it had deliberately cultivated through more than a decade of marketing the App Store as a uniquely safe and trusted environment."

In other words, the plaintiffs argue that Apple's safety claims made it easier for scammers to fool customers.

The lawsuit accuses Apple of several legal violations, including negligence, fraud, false advertising, and violating California's Consumers Legal Remedies Act. It claims Apple failed to remove fake apps even after receiving reports that they were being used to scam people.

The complaint also highlights warnings from Sparrow Wallet developer Craig Raw. According to the lawsuit, Raw told Apple as early as January 2024 that fake Sparrow Wallet apps were available in the App Store. Despite those warnings, he said the fake apps remained online.

Raw later tried to protect users by submitting a simple app that warned people Sparrow Wallet only works on desktop computers and that any iPhone version was fake. According to the reports, Apple instead flagged his developer account for termination because of what it called "dishonest activity." Apple later reversed that decision.

The lawsuit argues that Apple's actions allowed fake apps to remain available while making it harder for the real developer to warn users about the scam.

The complaint also points to other digital-asset-related scams that allegedly appeared on the App Store, including a fake Ledger Live app and another lawsuit involving a fake digital asset trading app called Swiftcrypt. The plaintiffs say these cases show problems with Apple's app review system.

Apple has rejected claims that it ignores fraudulent apps. After the lawsuit was filed, the company said it had "taken swift action" to remove apps pretending to be Sparrow Wallet and had terminated the developer accounts connected to those apps.