On October 20, attackers stole the WebAuth key Keystone uses to verify its devices.

With a copy of that key, someone could create counterfeit wallets that pass the official authenticity check.

Keystone is destroying 18,835 unsold devices carrying the old key and switching to a new one. The company also disclosed that 25,964 customer records were exposed.

According to Keystone, recovery phrases, private keys and payment details were unaffected. No counterfeit devices or related fund thefts have been reported so far.

Devices received before October 20 remain trusted if they pass verification. Anyone who received one on or after that date should contact Keystone support before using it.

How much can users trust a hardware wallet’s authenticity check when the verification key itself gets stolen?

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