Apple sued for App Store crypto wallet fraud, resulting in user losses exceeding $1.8 million

Apple has been sued by the Federal District Court of Northern California for failing to effectively prevent cryptocurrency fraud applications within the App Store. Three users accused Apple of a security review mechanism loophole that resulted in downloading fake encrypted wallet applications, causing a cumulative loss of over $1.8 million. The involved application impersonated Sparrow Wallet, resulting in three users losing approximately $875000, $840000, and $120000 respectively. The plaintiff requests a jury trial and seeks compensation. Apple responded by stating that they will quickly remove the violating app and that there are currently no Sparrow Wallet counterfeit apps in the App Store.