Keystone, a hardware wallet manufacturer, suffered a security breach when an attacker exploited a vulnerability in a third-party monitoring tool to steal customer data and the cryptographic key used to verify that its devices are genuine. This means counterfeit wallets could potentially pass authenticity checks, though no fake devices or thefts have been reported. In response, Keystone is destroying 18,835 unsold devices carrying the compromised key, pausing shipments until new devices with a replacement key are ready, and advising customers who received devices after October 20 to contact support before use.
