Keystone to Scrap 18,835 Wallets Over Suspected Authentication Key Theft

Keystone, a maker of digital-asset hardware wallets, will scrap a large batch of devices after suspecting their authentication keys were stolen.

Keystone decided to dispose of 18,835 hardware wallets, digital-asset outlet Bitcoin News reported on October 29.

The company detected unauthorized access on its official website on October 20. It determined that the attacker exploited a vulnerability in an external monitoring tool to steal authentication keys used to verify whether devices were genuine.

Customer data was also exposed. A total of 25,964 customer records collected from 2024 to 2026 included names, contact details, shipping addresses and order information.

Keystone said users' digital assets, recovery phrases and private keys were not compromised. As a result, customers do not need to move their digital assets to other wallets.

The company has suspended product shipments through its official website and plans to produce devices with new authentication keys.