Keystone announced that it will destroy 18,835 unsold hardware wallets following a security breach that compromised customer information and a key used to verify the authenticity of its devices.
The attack occurred on October 20, when an unauthorized party accessed the company’s website through a vulnerability in a third-party data monitoring tool.
— Keystone Hardware Wallet (@KeystoneWallet) October 26, 2026
The breach exposed 25,964 customer records dating from 2024 to 2026, including names, contact details, shipping addresses, and order information.
Another 12,873 incomplete checkout records may also have been compromised.
The exposed key is embedded in devices during manufacturing and cannot be changed afterward. According to Keystone, the leak could allow counterfeit wallets to pass authenticity checks and be identified as legitimate products.
The company suspended shipments and clarified that recovery phrases, private keys, and wallet credentials were not exposed. Devices delivered before October 20 remain safe to use if they pass authentication checks.
Keystone also acknowledged that it had retained customer information beyond its 180-day data deletion policy because of an undetected failure in its automated system.
The company will replace the authentication key in newly manufactured devices, switch website sales to a preorder system, and reduce its data retention period to 90 days. It also warned users about potential fraudulent messages asking them to transfer funds or participate in fake product recalls.
Source: https://x.com/KeystoneWallet/status/2114719318722404578
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