A proposed class action against Coinkite, the Canadian maker of the Coldcard hardware wallet, has been before the Ontario Superior Court of Justice since 11 September 2026. The claim centres on a flaw in a firmware release from March 2021 that allegedly made the recovery phrases of affected devices predictable, and puts the Bitcoin drained as a result at more than $140 million. None of this has been proven, and the case has not been certified as a class action either.
If you own one of these devices, a separate question matters more than the lawsuit: was your recovery phrase created before August 2026? If so, your balance does not depend on the court. It depends on when you move it.
What the claim alleges: $140 million and five device lines
The claim was filed by a retail investor from Los Angeles. He states that unauthorised transfers on 6 August 2026 cost him 1.22940052 Bitcoin, worth roughly $79,764 at the time according to the filing. The defendants are Coinkite Inc., based in Toronto, and its two co-founders.
The proposed class covers everyone who bought an Mk2, Mk3, Mk4, Mk5 or Q device for personal use. The claim ...
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