Apple faces lawsuit over alleged $1.8M Bitcoin wallet app losses

Apple is facing a lawsuit after three users alleged that a fake Sparrow Wallet app on the App Store tricked them into entering seed phrases, resulting in the theft of their Bitcoin holdings. The complaint claims combined losses of more than $1.8 million, with individual losses of about $875,000, $840,000 and $120,000. The case raises fresh concerns about App Store app vetting and the security risks of crypto wallet impersonation scams. Apple said it has removed impersonating apps and terminated related developer accounts. The news is negative for Apple from a reputational and legal-risk standpoint, while also highlighting ongoing security risks in the crypto ecosystem.