Why Keystone is Scrapping 18,835 Wallets (And What Existing Owners Should Do)

Keystone will destroy 18,835 unsold hardware wallets after attackers obtained a device-authentication key that could help counterfeit devices pass verification. The breach exposed 25,964 purchase records and 12,873 incomplete checkout records, including personal and shipping information. Keystone says private keys and recovery phrases were unaffected, but customers receiving devices after October 20 may require additional authenticity checks. Hardware wallet manufacturer Keystone will destroy 18,835 unsold devices after discovering that attackers obtained a cryptographic credential used to verify whether its products are genuine.