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…

First reported by Bitcoin.com News. This page is a short excerpt; the full text is theirs.