Keystone key theft dooms 18,835 wallets

Keystone key theft dooms 18,835 wallets Could a fake wallet pass as real now?

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Keystone will destroy 18,835 unsold hardware wallets after an attacker stole the key it uses to prove a device is genuine — a key that can't be rewritten on units already built. Shipments are paused, sales move to preorders, and 25,964 buyer records leaked too. Seed phrases and private keys were not exposed. To Rektroactive, shredding the stock is overdue rather than overkill, a sign the company studied Ledger's 2020 breach. The real damage, in that view, comes from the customer list: fakes need a supply chain, a leaked database only an email template. As The Blockfather stresses, the stolen key can't touch coins, while the Jameson Lopp log cited there counts 118 physical attacks on holders this year, versus 131 in all of 2025. The pushback comes from Arxion Labs, which treats the two risks as one. Ledger's leak led to unordered "Nano X" parcels asking for recovery phrases, but those attackers lacked Ledger's own authentication key. Keystone's attacker holds both the buyer list and a key that can make a fake pass the genuine check. If a device arrives unannounced and verifies as real, how many owners would still question it?

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