Coinkite sued over Coldcard flaw as $140M in bitcoin is drained

Coinkite, the maker of Coldcard hardware wallets, faces a proposed class action filed September 11, 2026, after attackers allegedly drained more than $140 million in bitcoin. The suit claims a five-year-old flaw caused the devices to generate predictable recovery phrases, exposing customers to theft. A large hardware-wallet loss undermines confidence in self-custody and could push some holders toward custodial or exchange-based storage.