117 Partners Founder Outlines Recovery Paths After Coinkite Security Incident

117 Partners founder Thomas Braziel, who has worked on claims in several crypto bankruptcy cases including FTX, Mt. Gox, and Celsius, outlined two parallel recovery paths following the Coinkite security incident involving Coldcard manufacturer Coinkite. According to Foresight News, Braziel said the goal is to maximize recovery for victims.The first path is a product liability lawsuit against Coinkite in Canada, based on the argument that the company should not have sold a defective security product that caused major losses to customers. If the facts are established, the proposed class action would likely use a contingency fee model of about 33%, with victims not needing to pay legal fees upfront, and it is expected to take 1 to 3 years.The second path focuses on asset recovery from the hackers. It would involve seeking a temporary restraining order in the United States, identifying relevant wallets and intermediary accounts, obtaining judgments where appropriate, and pursuing third parties that may hold or have handled the stolen assets. This route may require litigation financing but is expected to move faster.Braziel said recovery cannot yet be guaranteed and that the strategy is still evolving through discussions with more legal teams.