COINDESK · 2026-10-27 11:14 UTC

Crypto wallet maker Keystone to destroy almost 19,000 devices after security breach

Keystone hardware wallet maker will destroy 18,835 unsold devices after a website breach on Oct. 20 exposed 25,964 customer records and a production key used for authenticity checks that could enable counterfeit wallets. The stolen key cannot be changed and is built into devices during production, raising risk that fake devices could pass authentication and compromise user funds. Keystone failed to delete customer data under its 180-day retention policy due to a failed automated deletion tool; the company will replace the authentication key in new devices and reduce data retention to 90 days.

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