Keystone destroys 18,835 hardware wallets, shipping on hold

The information provided in this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high degree of risk. Always conduct your own research.The break-in on Keystone's website leaked the key owners use to verify their hardware wallet. Because it sits in the chip from the factory, the maker is destroying 18,835 finished devices and has halted shipping.Hardware wallet maker Keystone is destroying 18,835 finished devices from its own warehouse and has halted shipping. Behind that stands a cryptographic key. During the break-in on the company website on October 20, 2026, the so-called WebAuth key leaked, the key Keystone owners use to check online whether their device is genuine. That key is written permanently into the chip during manufacturing and cannot be swapped afterwards. The only option left to the maker is to destroy the affected batch. For owners the picture is narrower than the number suggests. The recovery phrase is not affected, according to the company, and anyone who received their device before October 20 has nothing to return and no balance to move. The delivery date is what counts. This piece sets out w...