KEYSTONE HARDWARE WALLET DISCLOSES BREACH, DESTROYS 18,835 DEVICES

Summary from the TLDR Crypto newsletter

Keystone disclosed a breach in which an attacker pivoted from a compromised third-party monitoring tool to access 25,964 buyer records, 12,873 incomplete checkout records, and the WebAuth device authentication key burned into hardware during manufacturing. That key cannot be erased from existing units and is the mechanism for verifying device genuineness, meaning an attacker now has the capability to produce counterfeit Keystones that pass authentication checks. Keystone is destroying all 18,835 devices in current inventory, suspending all unshipped orders, and halting production under the compromised key until new-key devices are ready. User assets, recovery phrases, and private keys were not affected. A Shopify data-erasure tool failure caused customer records to be retained beyond the company's 180-day policy, widening the exposure window.