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Crypto wallet maker Keystone to destroy almost 19,000 devices after security breach

Keystone will destroy 18,835 unsold hardware wallets and suspend shipments after a website breach on October 20 exposed a key that could let counterfeit devices pass authenticity checks. The breach exposed 25,964 buyer records from 2024 through 2026, including names, contact details, shipping addresses and order information, and 12,873 unpaid checkout records may also have been affected. Keystone said recovery phrases, private keys and wallet credentials were not exposed, but some records were kept past its 180-day deletion policy because an automated tool failed without the company detecting it. Devices delivered before October 20 remain safe if they pass authentication, and the firm plans to replace the authentication key, move website sales to preorders and cut customer data retention to 90 days.

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