Keystone to destroy 18,835 hardware wallets after authentication key breach

Hardware wallet manufacturer Keystone has confirmed that hackers stole a device authentication key and exposed personal information belonging to 25,964 customers, forcing the company to destroy 18,835 devices and suspend shipments. Summary Keystone confirmed that hackers accessed personal information linked to 25,964 customer records and stole a device authentication key. The company will destroy 18,835 hardware wallets from existing inventory because the stolen key could allow counterfeit devices to pass authentication checks. Keystone has suspended shipments and switched to preorders until new devices using a replacement authentication key are ready. The company said recovery phrases and private keys were not compromised, while customers receiving devices after October 20 may need additional verification. According to the company’s October 26 security announcement, attackers gained unauthorized access to its official website on October 20 by exploiting a vulnerability in a third party data monitoring tool, which allowed them to obtain customer records and the key used to verify whether Keystone devices are genuine. The company said recovery phrases, private keys, wallet credentia...