[pranavjain97]

Adds opt-in upgrading of v1 user keys to v2 (argon2) encryption when a user signs. The upgrade runs in the background, after signing, and never blocks or fails the signing call.

Enabling it

• New BitGo constructor option upgradeEncryptionOnSign (default false), read through bitgo.isUpgradeEncryptionOnSignEnabled().
• New per-call upgradeEncryption?: boolean on signing options, which overrides the constructor setting. It is never sent to the server.

Where it runs

• wallet.signTransaction (multisig, TSS, OFC), wallet.signMessage, wallet.signTypedData
• pendingApproval.approve (TSS recreate and sign)
• Lightning payInvoice and withdrawOnchain (user auth key)

Safety

• The new encryption is decrypted again and compared with the original before it is written.
• The write includes the current encryptedPrv, so the server rejects it if the key changed in the meantime. That case is reported as skipped: keyChanged.
• Concurrent upgrades of the same key share one request.
• After a failure the key stays as it was, and the next sign tries again.

Issue Number

WCN-285

[linear-code]

WCN-285

[github-actions]

⚠️ Compatibility checks are failing on Node.js 27-nightly (experimental, non-blocking). This does not block merge, but it signals an incompatibility to fix before this release becomes supported.

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[claude]

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[s84krish]

lgtm