Cyber Risks · The Hacker News

Keystone to Destroy 18,835 Hardware Wallets After Hackers Steal Device Verification Key

Summary: An attacker who gained access to Keystone's website obtained the verification key its hardware wallets use to prove they are genuine, the company said on October 26, and Keystone will destroy 18,835 unsold devices that carry it. The attacker exploited a vulnerability in a third-party data monitoring tool to escalate privileges, obtaining customer data and the key; Keystone blocked access on October 20 and has fixed the vulnerability, and the incident affected 25,964 buyer records from website purchases between 2024 and 2026.

What you should know: The key is burned into each device at manufacturing and cannot be erased or rewritten, so 18,835 units must be destroyed and every device already in buyers' hands can never be switched to the new key. Keystone has not reported any counterfeit devices or thefts, but it also cannot rule out that a device received after October 20 passing authentication is counterfeit.

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Topics
Data Breaches
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