Keystone Hardware Wallet Breach Exposes Authentication Key as Crypto Security Risks Grow

Hardware wallet maker Keystone has disclosed that hackers who breached its website also stole a key used to verify whether devices are genuine, expanding an incident that was initially believed to involve customer data only. The disclosure raises a more serious security concern: counterfeit hardware wallets could potentially pass Keystone’s authenticity checks and appear legitimate to users. Keystone initially disclosed that attackers had accessed customer information including names, contact details, addresses and order information. The company later confirmed that the breach also exposed an authentication key used by its verification system.