Keystone Factory WebAuth Key Stolen; 18835 Inventory Wallets to Be Destroyed

According to a TechFlow report on Oct. 28, citing Decrypt, Bitcoin hardware wallet maker Keystone said attackers obtained its permanent factory WebAuth key written to devices and used to verify hardware authenticity, which could be used to create counterfeit wallets that pass official verification. Keystone will destroy 18835 unsold devices and suspend all unshipped orders on its official website. The incident was discovered on Oct. 20 and also affected 25964 buyer records from its Shopify store from 2024 to 2026, including names, contact information, and shipping addresses. Keystone said seed phrases and private keys were not affected, devices delivered before Oct. 20 are not affected, and urged users to be wary of scams using 'recall' or 'asset migration' as pretexts.

Source: TechFlow