Apple (NASDAQ: $AAPL) is being sued for allegedly keeping a fake Bitcoin (CRYPTO: $BTC) wallet on its App Store for more than a week after a customer reported losing $875,000 U.S. due to a scam.
The lawsuit claims that another user lost $840,000 U.S. due to Apple’s delay in removing the fake Bitcoin wallet from its App Store.
In the lawsuit, three people say they collectively had $1.84 million U.S. stolen after downloading an app impersonating Sparrow Wallet and entering their Bitcoin seed phrases.
Seed phrases allow anyone possessing them to control and transfer assets from a particular crypto wallet.
In the lawsuit, the plaintiffs argue that Apple’s marketing led them to believe that apps on its marketplace were carefully vetted and safe.
The legal action accuses Apple of violating consumer-protection laws, and of engaging in fraudulent and negligent misrepresentation, and failure to warn consumers of risks.
Apple has faced similar lawsuits in the past.
In 2021, cryptocurrency holders sued the technology giant over a fake wallet app scam in a case that was dismissed by a federal judge.
In the current lawsuit, Apple is alleged to have ranked the fraudulent app and included it in curated cryptocurrency app collections alongside legitimate Bitcoin wallets.
The case seeks reimbursement of the stolen assets, compensatory and punitive damages, and potentially multiplied damages.
Apple says it has taken action to remove any apps impersonating Sparrow Wallet on the App Store and to terminate developer accounts associated with those apps.
AAPL stock has risen 58% over the last 12 months to trade at $338.10 U.S., near an all-time high.
