Coldcard hardware wallet maker Coinkite and its co-founders, Rodolfo Novak and Peter D. Gray, are facing a proposed class action in Ontario, Canada. The lawsuit alleges that the standard firmware used by Coldcard hardware wallets since around March 2021 contained a fundamental flaw. According to the claim, the firmware did not use a true random number generator and instead relied on a predictable software pseudo-random number generator. That, the suit says, could allow wallet seed phrases to be reproduced, exposing users’ Bitcoin holdings to unauthorized access. The filing seeks class certification and alleges that Coinkite breached the Consumer Protection Act and the Sale of Goods Act. It also includes claims tied to negligence and breach of contract, with the plaintiffs seeking damages.
Coldcard hardware wallet maker Coinkite and its co-founders, Rodolfo Novak and Peter D. Gray, are facing a proposed class action in Ontario, Canada, according to ChainCatcher.
Complaint targets randomness used in standard firmware
The lawsuit alleges that the standard firmware used by Coldcard hardware wallets since around March 2021 had a fundamental defect. It says the firmware did not use a true random number generator and instead relied on a predictable software pseudo-random number generator.
According to the claim, that could make wallet seed phrases reproducible and leave users’ Bitcoin exposed to unauthorized access.
Plaintiffs seek class certification and damages
The suit asks the court to certify the case as a class action. It also claims Coinkite violated the Consumer Protection Act and the Sale of Goods Act, while adding allegations including negligence and breach of contract. The plaintiffs are seeking damages.
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