Keystone Halts Web Orders, Will Junk 18,835 Wallets in Stock Over Stolen Authenticity Key

Hardware wallet maker Keystone said in an October 26 post on X that it will destroy 18,835 devices sitting in its inventory after the intruder behind its website breach also obtained the WebAuth key that underpins its device-authenticity checks. The danger lies in how the key works. Keystone burns it into its devices during manufacturing and cannot erase or rewrite it later. Anyone holding a copy could make counterfeit devices the company’s own verification page would vouch for, which Keystone said could end in stolen funds. That is why it is switching factory production to a fresh key, freezing shipments of website orders it hasn’t sent, and selling new units only as preorders until new-key devices are built.

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