Sparrow Wallet released version 2.5.4 of its privacy-focused Bitcoin wallet after an AI-assisted code review identified most of the update’s fixes. Developer Craig Raw said the review was prompted by the release of unrestricted Chinese AI models and the new capability to search large codebases for potential exploits, following a July attack on Coldcard wallet where a seed-generation flaw was exploited. The update includes dozens of security changes, such as verifying transactions returned by Electrum servers, validating cryptographic proofs, and strengthening compatibility with Ledger, Trezor and Keycard devices. No exploitation of the detected issues has been observed, but Craig Raw nonetheless recommends installing the update.
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