Coinkite Faces Class Action Lawsuit Over Allegedly Flawed Random Number Generation in Coldcard Wallets
Coldcard hardware wallet manufacturer Coinkite and its co-founders are facing a class-action lawsuit in Ontario, Canada. The lawsuit alleges that Coldcard's standard firmware has used a predictable software-based pseudo-random number generator since March 2021, potentially compromising the security of users' Bitcoin holdings.
Class-action lawsuit filed against Coinkite over Coldcard firmware.
Allegation: Use of predictable pseudo-random number generator since March 2021.
Potential risk for mnemonic phrase reconstruction and Bitcoin holdings.
Lawsuit seeks damages and alleges violations of consumer protection acts.
Story
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.
Issue context
The crypto market shows mixed signals on October 22, 2026. Bitcoin dropped below the $83,000 mark, influenced by macroeconomic factors and emerging narratives such as AI concerns. Concurrently, US spot Bitcoin ETFs attracted over $1 billion in inflows within three days, indicating sustained institutional interest. Meanwhile, Ethereum and Solana are advancing significant technical developments aimed at improving scalability and institutional adoption.
Current market movements indicate that external factors like AI narratives and geopolitical tensions can influence sentiment, even when fundamental ecosystem developments are positive. Pay attention to the validation of technical upgrades and network stability, as delays or security concerns can impact market sentiment. Institutional inflows remain a key indicator, but their volatility requires close monitoring.
Market pulse
BTC
$82.5K
-0.36% 24h / +1.44% 7d
Fear & Greed
68
Greed
BTC Funding
+0.0030%
20 perp markets · Open Interest $54B
BTC Open Interest
$54B
24h volume $95.5B · basis +0.023%
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This story is part of the Biturai Market Brief and is for informational purposes only. No investment advice.