Coinkite Faces Class Action Lawsuit Following Major Coldcard Wallet Security Flaw

TL;DR Coinkite faces a proposed class action lawsuit over a vulnerability in its Coldcard wallets linked to the theft of $140 million in Bitcoin. The complaint alleges that a firmware error introduced in 2021 caused some devices to generate predictable recovery phrases for more than five years. The company released a fix in July 2026, but affected users also needed to generate new recovery phrases and transfer their funds. Coinkite faces a proposed class action lawsuit in Canada over a security vulnerability in its Coldcard hardware wallets , which allegedly enabled the theft of more than $140 million in Bitcoin . The complaint accuses the company of distributing devices capable of generating predictable recovery phrases. The lawsuit was filed on September 11 in Ontario’s Superior Court of Justice.

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