Coinkite Faces Class Action Lawsuit in Canada Due to Firmware Vulnerability

Coldcard hardware wallet manufacturer Coinkite and its co-founders Rodolfo Novak and Peter D. Gray are facing a class action lawsuit in Ontario, Canada. The lawsuit alleges that the standard firmware of the Coldcard hardware wallet (since around March 2021) contains defects, failing to use a true random number generator and relying on a predictable software pseudo-random number generator, which allows the recovery phrases to be reproduced, making users' Bitcoin susceptible to unauthorized access. The lawsuit seeks class certification, claiming that Coinkite violated the Consumer Protection Act and the Sale of Goods Act, involving negligence, breach of contract, and more, and is seeking damages.

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