Coinkite Sued After Coldcard Wallet Flaw Exposes $140M in Bitcoin

A five-year-old security flaw in Coldcard hardware wallets has landed manufacturer Coinkite a lawsuit after attackers allegedly drained more than $140 million in bitcoin. The proposed class action claims the devices generated predictable recovery phrases, leaving customers exposed to theft. A class action lawsuit filed Sept. 11, 2026, in Ontario’s Superior Court of Justice names Toronto-based Coinkite Inc. and co-founders Rodolfo Novak and Peter D. Gray as defendants. Plaintiff Amir Reza Naderi, a Los Angeles resident, alleges that a defective firmware update released in March 2021 compromised the security of Coldcard wallets for more than five years. The lawsuit states that the devices contained a vulnerability that “undermined the entire purpose and function of the device.” Coldcard wallets are designed to protect bitcoin by generating secret recovery phrases, commonly called…

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