KEYSTONE TO DESTROY 18,835 HARDWARE WALLETS AFTER HACKERS STEAL DEVICE AUTHENTICATION KEY Keystone has confirmed it will destroy 18,835 hardware wallets in existing inventory after attackers stole the cryptographic key used to verify the authenticity of its devices. The breach is particularly concerning because the stolen key could allow attackers to manufacture counterfeit Keystone wallets that successfully pass the company's official authenticity checks, potentially putting users' Bitcoin at risk. The key is permanently embedded in existing devices and cannot be erased or replaced, forcing Keystone to destroy its remaining inventory, suspend shipments and manufacture new devices with a replacement key. The company says attackers exploited a vulnerability in a third-party monitoring tool on its official website on October 20, gaining access to: - 25,964 customer records containing names, contact details, shipping addresses and purchase information. - 12,873 abandoned checkout records containing potentially sensitive customer information. Keystone also acknowledged that its automated data deletion system had failed, leaving customer information stored beyond its stated retention period. The company says recovery phrases, private keys and transaction signing were not compromised. Devices delivered before October 20 remain unaffected, but customers receiving devices with the old authentication key after that date are advised to seek additional verification. Keystone has suspended shipments, begun notifying affected customers and is moving production to a new authentication key.