Coinkite Faces Class Action Lawsuit Over Coldcard Flaw Linked to $140 Million Bitcoin Theft

Coinkite and its co-founders face a proposed class action lawsuit in Ontario's Superior Court of Justice alleging a Coldcard wallet firmware flaw enabled the theft of over $140 million in bitcoin. The lawsuit claims a March 2021 build error routed seed phrase generation through MicroPython's Yasmarang pseudorandom number generator rather than hardware randomness, leaving phrases predictable. Exploitation began on July 30, 2026, when attackers drained an initial 594 BTC worth $38 million within 25 minutes. Plaintiffs seek compensatory and punitive damages, alleging executives knew of the vulnerability by May 2025.