Sparrow updates Bitcoin privacy wallet to version 2.5.4 after AI-assisted code review

Sparrow Wallet, the desktop-only Bitcoin wallet beloved by privacy maximalists, shipped version 2.5.4 on August 27 after running its entire codebase through an AI-assisted security review. The verdict: no issues that could put user funds at risk. The fixes that did land, though, tell a story about how seriously the project takes trust-minimized self-custody. The update touches nearly every layer of the wallet’s security stack, from how it talks to hardware signers to how it routes traffic over Tor. What actually changed The headline fix addresses residual DNS leaks that could occur when Sparrow routes connections through Tor. DNS leaks are the privacy equivalent of whispering a secret into a megaphone: even if your transaction data travels through an encrypted tunnel, a stray DNS query can reveal which servers you’re contacting to your internet provider. Sealing those leaks keeps Sparrow users closer to the anonymity Tor promises. Hardware wallet support got several meaningful tweaks. The update adds retry logic for policy registrations on devices like Ledger, Trezor, BitBox02, and Keycard. In practice, that means fewer cryptic error messages when your hardware signer and Sparrow m...