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If you were affected for this "hack" or security issue created by Coinkite, I really sorry for your lost. You were doing what you supposed to do, self custody and it didn't worked out well.

My question is, can user affected by this incident take Coinkite to court?

Do you think Coinkite will give some SATs to the users who lost funds?
What would you do if you were the Coinkite CEO?

Do you think the company will survive?

A lesson I learned early in business when I took a contractor to small claims court. "You can't draw blood from a stone".

Coinkite is cooked. They aren't a big enough company to be insured for an incident of this magnitude. Sure you could probably sue them and once they are stripped of their meager assets by a bankruptcy court, creditors are paid, employees are paid etc there is likely nothing left and if there was anything it really would be almost nothing when split amongst affected users.

The only way users could possibly get their funds or a portion of their funds back is if the hackers were caught with the Bitcoin and it was seized by law enforcement. Maybe there would be some sort of path but even that seems pretty unlikely you would have to prove ownership of the wallet, prove that wallet generated that seed, prove you didn't move the funds yourself. Seems pretty unlikely and a high bar to meet.

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You do know that Coinkite is a Canadian business!!

First the fires
Now the Rugpulls!

I am on to you Canucks!

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Yes I knew that.

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Yep. A lawsuit would be fruitless. If I was NVK. I would brush up on my short order cooking skills.

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Sadly, this is probably the most accurate answer.

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10 sats \ 0 replies \ @anon 31 Jul

In the Province of Ontario, Directors can be held personally liable for negligence.

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Definitely dead.

I do wonder if cold card themselves got drained, then there'd be no funds to claw back even if buyers were successful suing them.

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Very interesting feedback. Thanks

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Yes, No, Not sure, No

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103 sats \ 2 replies \ @justin_shocknet 31 Jul -420 sats

Blood from a stone, even if a court did award a judgement their assets would probably be a rounding error relative to the scale of the damages and given it would likely have to be a class action.

Then, proving that it was your funds that were stolen is then yet a whole other hurdle.

Some ideas around UID's being floated on X but there's holes in that approach.