Keystone will destroy 18,835 unsold hardware wallets after attackers compromised its WebAuth device authentication key. The breach, detected on October 20, also exposed personal information across 25,964 buyer records and 12,873 unpaid checkout records due to an exploited third-party tool. Keystone stated that recovery phrases, private keys, and wallet credentials were not involved, while device shipments remain paused until production switches to a replacement key.
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