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Bitkey app used a non-cryptographic random generator for contact enrollment

BitkeyLow

Who is affected

Second-generation Bitkey users who enrolled Recovery Contacts or inheritance beneficiaries used secrets generated with a predictable random generator. Bitkey states the bug could not on its own give access to funds and that no customer was exploited.

What happened

On 2 August 2026 Bitkey, Block’s bitcoin wallet, disclosed a bug reported a day earlier by the X user @1440000bytes. Bitkey’s security updates page lists the same issue as BKS.2026.08.D and credits the reporter as floppy.md.

According to Bitkey, its mobile app generated the short secrets used to enroll Recovery Contacts and inheritance beneficiaries, and nonces in second-generation action proofs, with kotlin.random.Random, a general-purpose generator not designed for cryptographic use. Under narrow conditions, an attacker who observed enough related outputs could reconstruct its state and predict a later enrollment secret. Bitkey says the bug is in the app, not the hardware or firmware, and only affects second-generation users who used relationship enrollment, a flow launched in late April 2026.

Bitkey states the bug does not weaken the hardware key, the server key or spending keys, and that because wallets use 2-of-3 signing even a successful exploit would not give enough to move funds; it rates the practical risk for Recovery Contacts as none and for beneficiaries as highly improbable, requiring extensive access to Block’s infrastructure. It says its server logs show no insider activity of the kind an attack would leave. The fix switches to a cryptographically secure generator; Bitkey’s security updates page lists it in app 2026.11.2. Crypto Briefing reports the patch was submitted to both app stores on 1 August and that Bitkey held a public X Space on the issue on 2 August.

What Bitkey advises:

  • Keep the app updated.
  • Second-generation users with an inheritance beneficiary should re-enroll the beneficiary after updating.
WalletElectrum

Electrum is a lightweight Bitcoin wallet that allows users to store, send, and receive Bitcoin securely. It is known for its speed and low resource usage.

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SecurityRecovery

Recovery is the process of restoring access to a cryptocurrency wallet using its seed phrase or mnemonic backup if the original wallet is lost or inaccessible.

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TransactionNonce

A nonce is a sequential number in a blockchain transaction that ensures transactions from the same account process in order and prevents replay attacks.

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HardwareFirmware

Firmware is the software that runs on a hardware wallet itself: it generates keys, shows transaction details on the screen and signs.

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GeneralCryptocurrency

Cryptocurrency is a digital or virtual currency secured by cryptography, operating on decentralized blockchain networks to enable secure, peer-to-peer transactions.

Sources

Independent reporting and research this entry was checked against.

  1. Bitkey — Relationship-enrollment bug in Bitkey (2 Aug 2026)
  2. Bitkey — Security updates (Aug 2026)
  3. Crypto Briefing — Bitkey addresses vulnerability flagged by researcher, confirms no risk to funds (2 Aug 2026)

Learn more

Guides on protecting yourself against this type of incident (Software vulnerability) and the glossary terms that describe it.

Cite this entry

WalletInsights. “Bitkey app used a non-cryptographic random generator for contact enrollment”. Hardware wallet security incident tracker. Last verified November 3, 2026. https://walletinsights.io/en/security-incidents/bitkey-relationship-enrollment-weak-randomness-2026/

Corrections and right of reply

Vendors, researchers and readers can send corrections or statements to security@walletinsights.io. We check them against the sources, update the entry and record the change in its log.