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Keystone breach deepens: Hackers stole key used to verify wallets as genuine

Hardware wallet maker Keystone said an attacker who breached its website last week also stole a key used to verify device authenticity, which could let counterfeit wallets pass its checks. The company plans to destroy 18,835 devices in inventory that contain the compromised key and has suspended shipments of devices using it. It disclosed that 25,964 buyer records from 2024 to 2026 were stolen after a faulty data-erasure tool failed to delete them, and that 12,873 checkout records held by Shopify were also taken. Devices made and delivered before the Oct. 20 incident are considered safe, but the authenticity of later devices cannot be guaranteed. The breach follows other security issues at hardware wallet makers this year, including Ledger, Coinkite and Trezor.

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