Three Bitcoin holders have filed a federal lawsuit against Apple, alleging the company allowed a counterfeit version of the Sparrow Wallet app to remain on its App Store despite repeated warnings, resulting in a combined $1.8 million in stolen cryptocurrency. According to the complaint, Ramirez reported both the fraudulent app and his financial loss to Apple on July 25, 2025, the same day the theft occurred. Ellis, however, downloaded a version of the fake Sparrow app from the App Store nine days after Ramirez's report had already been submitted, according to the filing. According to Raw, Apple rejected that submission, classifying it as "placeholder content" that did not meet the App Store's guidelines. Apple also noted that, as of its most recent review, there were no active Sparrow Wallet copycat applications listed on the App Store.