Keystone Breach Deepens as 18,835 Crypto Hardware Wallets Face Destruction

Keystone’s website breach just took a far more troubling turn. Hackers obtained a device authentication key, forcing the hardware wallet manufacturer to destroy 18,835 devices, suspend shipments, and confront the exposure of nearly 26,000 customers’ personal information. What initially appeared to be a customer information breach has developed into a considerably more serious security problem. On Oct. 26, 2026, Keystone disclosed that attackers also obtained the authentication key used to establish whether its hardware wallets are genuine. The company traced the intrusion to a vulnerability in a third-party data monitoring tool that allowed attackers to escalate their access privileges.