Keystone destroys 18,835 hardware wallets after attacker obtains factory key

Hardware wallet maker Keystone will destroy 18,835 unsold devices and suspend shipping after an attacker obtained the permanent factory key used to verify device authenticity. The breach, detected October 20, also exposed 25,964 buyer records from Keystone's Shopify store. Keystone says recovery phrases and private keys were not compromised, but counterfeit devices passing verification checks could lead to asset theft.