Coldcard manufacturer Coinkite faces class action in Canada over firmware RNG flaw

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Release Time: 2026/10/22 05:13:33

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Summary

Coldcard manufacturer Coinkite and its co-founders, Rodolfo Novak and Peter D. Gray, are facing a class action lawsuit in Ontario, Canada, over a firmware RNG flaw. The lawsuit alleges that Coldcard wallets have used a predictable pseudo-random number generator since March 2021, risking exposure of private keys and violating CFT standards. The case could influence future compliance under MiCA, as hardware wallet security becomes an increasing regulatory priority.

Odaily Planet Daily reports that Coinkite, the manufacturer of the Coldcard hardware wallet, along with 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 used in Coldcard hardware wallets since around March 2021 contains a fundamental flaw: it does not employ a true random number generator, but instead relies on predictable software-based pseudorandom number generators, potentially allowing mnemonic phrases to be reproduced and exposing users’ Bitcoin to unauthorized access. The lawsuit seeks class certification and claims that Coinkite violated the Consumer Protection Act and the Sale of Goods Act, as well as allegations of negligence and breach of contract, and demands compensation.

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