Bitcoin Privacy Wallet Sparrow Issues Update After AI Flags Fixes
Sparrow Wallet released version 2.5.4 after an AI-assisted security review that produced most of the fixes. Developer Craig Raw said the review was driven by the ability of new AI models to search large codebases for exploits, especially after the Coldcard seed-generation flaw suggested attackers could use AI to find wallet weaknesses. Raw said no evidence showed Sparrow users were exploited and that nothing found appeared likely to put funds at immediate risk. The update adds many security hardenings: stronger verification of Electrum server data, proof checks that transactions were actually recorded in Bitcoin blocks, tighter confirmation logic, improved BitBox02 protections, and changes for Ledger, Trezor, Keycard, multisig, Payjoin, imports, and PSBTs. It also redacts secrets from logs, restricts wallet and backup directory access, and fixes Tor-related DNS leaks. Raw recommends updating, while noting air-gapped users may prefer to review the changelog first.
