Coldcard manufacturer Coinkite is facing a class action lawsuit in Canada, accused of defects in the firmware random number generator

Coldcard hardware wallet manufacturer Coinkite and 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 by the Coldcard hardware wallet since around March 2021 has fundamental flaws, failing to utilize a true random number generator and instead relying on a predictable software pseudo-random number generator, which could lead to the mnemonic phrases being reproduced and the Bitcoin held by users being at risk of unauthorized access.

The lawsuit seeks class certification and claims that Coinkite violated the Consumer Protection Act and the Sale of Goods Act, while also involving allegations of negligence and breach of contract, seeking compensation.