Bitcoin Wallet Maker Keystone Pulls Devices as Stolen Key Opens Door to Fakes
Attackers obtained the factory key that proves Keystone's hardware wallets are genuine, and 25,964 buyer records were affected. The company says recovery phrases and private keys were not involved.
Keystone, the hardware‑wallet manufacturer known for its air‑gapped devices, has announced that it is pulling all its wallets from the market after attackers obtained the company's factory key. The key, which is normally embedded by the manufacturer to certify that a device is genuine, can be used by counterfeiters to create wallets that pass authenticity tests. 25,964 buyer records were identified as potentially exposed, but Keystone stresses that no recovery phrases or private keys were involved in the breach.
The discovery of the key was made when a batch of wallets was sold to consumers who appeared to have received devices that were purportedly authentic, yet carried anomalies that raised suspicion. During a routine audit, Keystone's security team traced the anomaly back to the factory key that authorises the unit’s production‑grade endorsement. Once the key was compromised, counterfeiters could embed it into cloned devices, leading to a wave of fake wallets masquerading as legitimate products.
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- Decrypt27 Oct, 19:16
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