Bitcoin Privacy Wallet Sparrow Issues Update After AI Flags Fixes

In brief

• Sparrow Wallet released version 2.5.4 following an AI-assisted code review.
• Developer Craig Raw said the review produced most of the update’s fixes.
• He found no signs of exploitation but recommends updating.

Privacy-focused Bitcoin wallet developer Sparrow Wallet released version 2.5.4 on Thursday after an AI-assisted code review that yielded most of the update’s fixes, developer Craig Raw told Decrypt.

Raw said the review was prompted primarily by the release of unrestricted Chinese AI models and the new ability to search large codebases for potential exploits. He did not identify the models used to review Sparrow.

The review followed a July attack involving a flaw in Coldcard’s seed-generation code. The vulnerability allowed an attacker to reconstruct private keys without accessing the physical devices. Coldcard manufacturer Coinkite said it believed AI may have helped the attacker find the flaw.

“Obviously, the Coldcard incident triggered a great deal of activity within the Bitcoin space itself, but it was really the sudden arrival of the capability to search large codebases for potential exploits,” Raw told Decrypt.

Asked which fixes came from Sparrow’s AI-assisted review, Raw said, “Most of them—it was the bulk of the work in this release.”