CROWDFUNDINSIDER · 2026-10-28 17:19 UTC

Proposed Class Action Filed Against Coinkite and Co-Founders Over Coldcard Seed-Phrase Flaw Linked to $140M+ in Bitcoin Losses

A class-action lawsuit filed in Ontario Superior Court alleges that Coinkite's Coldcard hardware wallet contained a critical firmware defect around March 2021 that used predictable software randomness instead of hardware randomness for seed phrase generation, affecting Mk2-Mk5 and Q models. The defect was exploited starting July 30, 2026, resulting in over $140 million in unauthorized Bitcoin transfers from users' wallets, with the plaintiff losing 1.22940052 BTC. The lawsuit claims defendants were aware of the flaw since May 2025 but failed to warn users, and seeks damages under Ontario's…

Loading the story on Tree News…