Coldcard Vulnerability Causes User Losses Exceeding $88 Million, Coinkite May Face Class Action Lawsuit
2026-08-02 20:34
Odaily News: Coinkite, the company behind hardware wallet Coldcard, may face legal action from users who collectively lost over 1,300 BTC — valued at more than $88 million — due to a vulnerability in the mnemonic generator of certain models.
Thomas Braziel, founder and managing partner of 117 Partners, is investigating product liability claims and potential class action lawsuits against Coinkite, while coordinating efforts to collect information from victims worldwide. Brazilian Bitcoin advocate Felipe Ojeda has filed a police report and will file a complaint against the company in Brazil.
Cris Carrascosa, CEO of ATH21, stated that Coinkite does not assume custodial responsibility for user funds tied to its products, and any lawsuit would need to prove that Coldcard could have foreseen the attack. Ana Ojeda, head of institutional business development at Blend, noted that victims do not have an automatic right to full recovery of funds, but an investigation into liability issues can be pursued.
Thomas Braziel, founder and managing partner of 117 Partners, is investigating product liability claims and potential class action lawsuits against Coinkite, while coordinating efforts to collect information from victims worldwide. Brazilian Bitcoin advocate Felipe Ojeda has filed a police report and will file a complaint against the company in Brazil.
Cris Carrascosa, CEO of ATH21, stated that Coinkite does not assume custodial responsibility for user funds tied to its products, and any lawsuit would need to prove that Coldcard could have foreseen the attack. Ana Ojeda, head of institutional business development at Blend, noted that victims do not have an automatic right to full recovery of funds, but an investigation into liability issues can be pursued.
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