Keystone Says Hackers Also Stole the Key That Verifies Its Hardware Wallets and Will Destroy 18,835 Devices

Hardware wallet maker Keystone said an attacker who breached its website last week also stole a key used to verify the authenticity of its devices. The company first described the incident as a customer data leak and widened its scope in a statement on X on Monday. It warned that the stolen authentication key could let attackers produce counterfeit wallets that pass its authenticity checks, which could be sold or shipped to customers and “potentially result in asset theft.”

A later update said the attacker exploited a vulnerability in a third-party monitoring tool on the website to escalate privileges, gaining access to customer information and the verification key. Keystone plans to destroy 18,835 devices in its inventory that contain the compromised key and has suspended production shipments of all devices using it until units with a new key are made. Devices made and delivered before the October 20 incident are considered safe. Keystone cannot guarantee the authenticity of devices delivered after October 20 and asked affected customers to contact support.

On customer data, the website’s Shopify store generated 51,083 buyer records. Of those, 25,119 were deleted under a 180-day retention policy, while 25,964 records from 2024 to 2026 were stolen because the automated bulk-erasure tool “did not operate reliably,” Keystone said. The attacker also took 12,873 checkout records from incomplete purchases retained by Shopify.

Cointelegraph notes the case follows other hardware wallet incidents this year involving Trezor, SafePal and BitBox, among others. This is news, not investment advice.

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Sources:

• Cointelegraph: Keystone breach deepens, hackers stole key used to verify wallets as genuine