Apple is being sued by three people who claim approximately $1.8 million in Bitcoin was stolen after downloading and using a fraudulent Sparrow Wallet application from the App Store.
The complaint, filed on July 24 in California, alleges that Apple failed to adequately review and monitor applications distributed through the App Store while promoting the marketplace as a safe and trusted source for software.
Plaintiffs James Ramirez, Christopher Ellis, and Jalen Delgado say the malicious application impersonated the legitimate Sparrow Bitcoin wallet and instructed them to enter their seed phrases.
After entering those secret recovery credentials, the victims allegedly had their Bitcoin transferred to cryptocurrency wallets controlled by the scammers.
The legitimate Sparrow Wallet is a desktop application available for Windows, macOS, and Linux, and does not offer an iOS version.
