Hacking News
Coinkite Sued for $140M+ Bitcoin Theft
Coinkite, the maker of Coldcard hardware wallets, is being sued in Ontario for allegedly selling wallets as a secure cold storage solution, but their seed phrases were predictable. The lawsuit claims attackers exploited a 'build and link integration error' to drain more than $140 million in Bitcoin. The first theft occurred on July 30, 2026, and the devices were patched with firmware the next day. The suit alleges Coinkite did not notify affected customers and that a bitcoin engineer warned about the flaw in May 2025, more than a year before the thefts began.