UPDATE: Keystone destroys 18,835 hardware wallets after WebAuth key breach
CIE News ·
Update to UPDATE: Keystone hackers steal verification key, prompting device destruction
Based on reporting by Decrypt; not yet independently confirmed.
Following a breach of its factory WebAuth authenticity key, Keystone is destroying 18,835 unsold devices, suspending shipments, and confirming 25,964 buyer records were exposed.
Keystone is destroying 18,835 unsold devices and halting store shipments after hackers obtained its WebAuth verification key, expanding on earlier disclosures that wallet authenticity keys had been compromised. Decrypt reported that the secret factory key allows counterfeit hardware to pass legitimate verification checks on Keystone's site. The manufacturer confirmed that user recovery phrases and private keys were not exposed.
Keystone stated that 25,964 customer records from its Shopify platform between 2024 and 2026 were compromised, exposing names, contact details, shipping addresses, and order information. An automated tool intended to erase client records after 180 days failed to purge the data. Keystone warned users that scammers might attempt phishing schemes related to fake device recalls or asset migrations, and noted that website sales have been moved to preorders until devices with a replacement key are manufactured.
Key facts
- 18,835 devices to be destroyed
- 25,964 buyer records exposed
- Shipments suspended
- Private keys not compromised