Coldcard manufacturer Coinkite faces a class-action lawsuit in Canada over a firmware random number vulnerability.

BlockBeats news, October 22 — 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 Coldcard hardware wallet standard firmware (since approximately March 2021) has a fundamental flaw: it does not use a true random number generator, but instead relies on a predictable software pseudorandom number generator, causing mnemonic phrases to be reproducible and making users' Bitcoin vulnerable to unauthorized access.

The lawsuit seeks class certification and claims that Coinkite violated the Consumer Protection Act and the Sale of Goods Act, was negligent, and breached contract, among other claims, and seeks damages.