Coinkite Sued Over $140M Bitcoin Theft Linked to Coldcard Wallet Flaw
A class action lawsuit alleges a firmware flaw in Coldcard hardware wallets led to the theft of $140 million in Bitcoin.
A class action lawsuit alleges a firmware flaw in Coldcard hardware wallets led to the theft of $140 million in Bitcoin. Bitcoin (BTC) is trading at ₹77,01,171 ($81,413.00), up 0.4% since this brief published. This is an original Token Times brief synthesising 2 outlets (Bitcoin.com, Crypto Economy), with their figures cross-checked, plus live market data, as of Thu, 22 Oct 2026 20:00:01 UTC.
The vulnerability affecting Coldcard wallets, which are widely used for Bitcoin storage, raises serious concerns about hardware wallet security and could impact user trust in the product. The alleged losses represent a significant amount of Bitcoin, affecting potentially thousands of users.
- Coldcard wallets reportedly generated predictable recovery phrases for over five years.
- Attackers allegedly stole $140M in Bitcoin due to the firmware flaw.
- Coinkite released a fix in July 2026 after discovering the vulnerability.
- Bitcoin price down 4.25% in 24 hours amid broader market decline.
Both Bitcoin.com and Crypto Economy report that Coinkite is facing a proposed class action lawsuit over a firmware flaw in its Coldcard wallets, which allegedly resulted in the theft of $140 million in Bitcoin. They agree that the vulnerability caused the devices to generate predictable recovery phrases for more than five years, from 2021 until a fix was released in July 2026. However, Crypto Economy provides additional context about the firmware error being introduced in 2021, while Bitcoin.com focuses more on the legal implications of the vulnerability.
Coinkite, the manufacturer of the popular Coldcard hardware wallet, is facing a proposed class action lawsuit after a firmware flaw was discovered in its devices. The vulnerability, which was present for over five years, allowed attackers to exploit predictable recovery phrases, leading to the theft of approximately $140 million in 
Bitcoin.
According to the complaint, the firmware error was introduced in 2021 and affected a significant number of Coldcard devices. The flaw was not addressed until July 2026, when Coinkite released a fix. This delay in addressing the vulnerability has raised questions about the company's security practices and its responsibility to protect user funds.
The lawsuit alleges that the vulnerability was exploited by attackers, resulting in the loss of a substantial amount of Bitcoin. Estimates of the total amount stolen range from $140 million, as reported by both Bitcoin.com and Crypto Economy. The vulnerability's long duration and the significant losses involved have heightened concerns about the security of hardware wallets.
This incident comes at a time when the broader cryptocurrency market is experiencing volatility, with Bitcoin's price down 4.25% in the past 24 hours. The total crypto market cap stands at $2.78 trillion, with Bitcoin's market cap accounting for $1.63 trillion. The Fear & Greed Index is currently at 68, indicating a state of 'Greed' among investors.
The outcome of this lawsuit could have significant implications for Coinkite and the wider hardware wallet industry. It may also influence user trust in hardware wallet security and prompt other companies to reassess their security measures. As the legal proceedings unfold, the cryptocurrency community will be closely watching how this case develops and what it means for the future of hardware wallet security.
Since this brief published about 6 hours ago, Bitcoin (BTC) has moved from ₹76,66,927.84$81,051.00 to ₹77,01,170.82$81,413.00 — +0.45%.
The chart plots BTC's price: grey is the move before this brief published, the vertical dashed line marks the moment it published, the horizontal dashed line is the price then, and the coloured area is the move since — from Token Times's market data (daily resolution). It shows what happened after the news, not that the news caused it; many factors move prices. Not financial advice.
Will Bitcoin dip to $50,000 by December 31, 2026?
Crowd-implied probability on Polymarket, ₹24.47M 24h volume, resolves Jan 1 — snapshotted when this brief published (Oct 22 18:05 UTC). A market price reflects what traders collectively expect; it is not a forecast by Token Times and will have moved since. View the market ↗
At today's peer-to-peer rate, 1 BTC ≈ ₹8.45M (about $81,413.00), down 3.6% over 24 hours. The rupee itself trades about 9.7% above the official rate on the P2P market, so a Indian buyer's effective cost differs from the headline dollar price.
Live market data
Current prices for the asset in this story — live, source-stamped, updated every 15 minutes.
1 key figure independently matched across 2 outlets reporting this story.
Token Times extracts the figures each outlet reports and flags the ones that agree. Numbers cited by only one outlet are attributed in the brief, not shown as corroborated.
Coinkite Sued Over $140M Bitcoin Theft Linked to Coldcard Wa — questions & answers
What is the alleged vulnerability in Coldcard wallets?
The vulnerability caused Coldcard wallets to generate predictable recovery phrases, exposing users to theft.
How much Bitcoin was allegedly stolen due to the flaw?
Approximately $140 million in Bitcoin was allegedly stolen due to the firmware flaw.
When did Coinkite release a fix for the vulnerability?
Coinkite released a fix for the vulnerability in July 2026.
How much is 1 Bitcoin worth in rupee today?
About ₹8.45M at the live peer-to-peer (P2P) USDT rate, which is what Indians typically trade at — equivalent to roughly $81,413.00. The rupee price moves with both BTC's US-dollar price and the USDT/INR rate; use our Bitcoin in rupee page for any amount.
Has Bitcoin's price moved since this brief was published?
BTC is up 0.45% since this brief first published — trading at ₹77,01,171 ($81,413.00) now versus ₹76,66,928 ($81,051.00) at publication. Token Times re-checks this figure against CoinGecko and Binance every 15 minutes.
Which outlets reported this story?
This is an original Token Times brief that synthesises reporting from Bitcoin.com, Crypto Economy, with the key figures cross-checked for agreement across them. It is not a copy of any one article — follow the source links above for the original reporting.
Original summary — not financial advice. This is an original Token Times brief that summarises a development reported elsewhere and adds live market data for context; it is not the original article and reproduces no part of it. Follow the source link above for full details. Crypto is volatile and high-risk — always do your own research.