Coinkite faces class action over Coldcard wallet flaw that allegedly exposed over $140 million in bitcoin
first published 2026-10-22T13:38:08Z
A proposed class action in Ontario accuses Coinkite and its founders of a five-year Coldcard hardware wallet flaw that allegedly produced predictable recovery phrases. The suit says a firmware error weakened random number generation, enabling thefts of more than $140 million in bitcoin and seeks damages for affected customers.
AI Analysis
The summary alleges a long-running security flaw in a hardware wallet that enabled theft of more than $140 million in bitcoin and triggered a class action lawsuit. This is directly negative for security and confidence in the affected product and could matter to bitcoin holders and traders.
Expected Investor Sentiment: Bearish
Potential Market Impact: Significant
