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Keystone to destroy 18,835 hardware wallets following security breach
Hardware cryptocurrency wallet manufacturer Keystone announced on October 26, 2026, that it will destroy 18,835 unsold devices following a security breach. The company has also suspended all shipments from its website.
The breach, detected on October 20, occurred through a vulnerability in a third-party data tracking tool. An attacker obtained a permanent WebAuth key used during manufacturing to verify device authenticity. Because this key is engraved into the hardware and cannot be modified, the compromised units could allow counterfeit devices to pass official authenticity checks.
In addition to the hardware risk, the intrusion exposed approximately 25,964 buyer records from Keystone’s Shopify store, covering the period from 2024 to 2026. The exposed data includes names, contact details, and delivery addresses. Keystone stated that recovery phrases, private keys, and crypto wallet IDs were not exposed, and that devices delivered prior to October 20 remain unaffected.
Entities
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The security breach was detected on October 20, 2026. decrypt.co
- [● 2 SOURCES] Keystone claims that recovery phrases and private keys were not exposed. decrypt.co
- [○ 1 SOURCE] The hack occurred via a vulnerability in a third-party data tracking tool.
- [● 2 SOURCES] Exposed customer data includes names, contact details, and shipping addresses. decrypt.co
- [● 2 SOURCES] Keystone has suspended all shipments from its website. decrypt.co
- [○ 1 SOURCE] An attacker obtained a WebAuth key used to verify device authenticity. decrypt.co
- [● 2 SOURCES] Keystone will destroy 18,835 unsold hardware wallets. decrypt.co
- [● 2 SOURCES] The breach exposed 25,964 buyer records from 2024 to 2026. decrypt.co