Coinkite Faces Class Action Lawsuit Over Allegedly Flawed Random Number Generation in Coldcard Wallets

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Coldcard hardware wallet manufacturer Coinkite, along with co-founders Rodolfo Novak and Peter D. Gray, are facing a class-action lawsuit in Ontario, Canada. The lawsuit alleges that Coldcard's standard firmware, used since approximately March 2021, relies on a predictable software-based pseudo-random number generator (PRNG) instead of a true random number generator (TRNG). This alleged flaw could potentially allow for the reconstruction of mnemonic phrases, exposing users' Bitcoin holdings to unauthorized access. The lawsuit seeks class-action certification and damages, accusing Coinkite of violating the Consumer Protection Act and the Sale of Goods Act, in addition to claims of negligence and breach of contract. For you as a hardware wallet user, the integrity of random number generation is crucial, as it forms the foundation of your private keys' security. You should closely monitor developments in this case and ensure your hardware wallet firmware is up-to-date and considered secure.