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Coinkite faces $140M lawsuit over Bitcoin wallet flaw enabling theft via predictable recovery phrases

Market News
22 Oct 2026
Tokenpost
View Source
Bearish
Coinkite faces $140M lawsuit over Bitcoin wallet flaw enabling theft via predictable recovery phrases

Coinkite, maker of the Coldcard hardware wallet, is sued in Ontario for a firmware flaw that made Bitcoin wallet recovery phrases predictable, leading to over $140 million in theft. The lawsuit claims a firmware update in March 2021 used a weak random number generator, making recovery phrases reproducible and vulnerable to attack starting July 2026. Plaintiffs allege the company founders knew of the defect by May 2025 and seek class-action status and damages under consumer protection laws. The case is currently before Ontario's Superior Court in Canada.

The lawsuit against Coinkite over a Coldcard firmware flaw is presented here with Pluang's cryptocurrency market data for context. For readers following major cryptocurrencies, the breadth shows 4 out of 50 rose while 45 fell as of Oct 22, 2026 22:51 WIB. Notably, FIL dropped 8.62% to Rp17.382 with 83% buy orders, contrasting with EOS which rose 8.13% to Rp12.649 and a typical hold time of 87 days, while SAND fell 7.78% to Rp969 with 81% sell orders and a longer hold time of 123 days.

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