News about crypto wallets

Two security breaches in the same week, including the largest cryptocurrency theft on record, have raised questions about storing funds on crypto exchanges. A Binance security incident affected some $6.3 billion in client assets, while Polymarket temporarily halted trading on its international exchange after a third-party data provider was hacked, with at least $2.7 million drained from user wallets. Unlike bank deposits insured by the FDIC, there is no similar coverage for funds lost from crypto exchanges, though Binance and Polymarket pledged to make affected users whole. Experts told CNBC the incidents are not surprising and expect more security incidents in the near term, with crypto seen as a unique target given how quickly users can access large amounts of liquidity. U.S.-regulated platforms Coinbase and Robinhood were not affected, and CFTC Chairman Michael Selig said offshore exchanges lack the safeguards found in U.S. financial markets.

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.

Hardware wallet maker Keystone said an unauthorized third party accessed customer shipping information through a website breach, including names, contact details, shipping addresses and order details, after it confirmed the incident on Friday following a review of API activity with Shopify. The company said it has blocked access, fixed the vulnerability, opened an investigation and is emailing affected customers, but did not disclose how many were impacted. Security researcher Taylor Monahan warned the leaked addresses could expose holders to physical attacks and kidnappings, and blockchain security firm CertiK recorded 52 verified wrench attacks worldwide in the first half of 2026, up 33% from the same period last year. Some customers said they received breach notices despite buying devices more than two years ago, raising questions about Keystone’s 2023 pledge to cut data retention to 180 days. Keystone had not responded to Cointelegraph’s questions by publication time.