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Keystone breach deepens: Hackers stole key used to verify wallets as genuine

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Keystone breach deepens: Hackers stole key used to verify wallets as genuine

Keystone initially disclosed a leak of customer information but has since disclosed that hackers also stole a key that could allow counterfeit wallets to pass authenticity checks.

Hardware wallet maker Keystone said an attacker who breached its website last week also stole a key used to verify the authenticity of its devices, widening the scope of an incident initially disclosed as a customer data leak.

In a statement Monday, Keystone said the stolen authentication key could allow attackers to produce counterfeit wallets that pass its authenticity checks.

“These devices could then be sold or shipped to customers, who might unknowingly use them as genuine products, potentially resulting in asset theft,” Keystone said.

The incident adds to a series of attacks targeting hardware wallet manufacturers this year.

Earlier this month, Ledger asked resellers across Southeast Asia and Hong Kong to suspend sales following reports that devices sold in the region contained unauthorized implants capable of capturing recovery phrases.

In late July, Coldcard manufacturer Coinkite issued a warning to users after attackers exploited a bug that caused its devices to generate wallet seeds with less entropy than intended, resulting in the theft of millions of dollars in crypto.

In its latest update, Keystone said the attacker exploited a vulnerability in a third-party monitoring tool used by its website to escalate privileges.

“This enabled the attacker to obtain some customer information and a key used to verify the authenticity of our devices.”

Keystone said it plans to destroy 18,835 devices in its inventory that contain the compromised key and has suspended production shipments of all devices using it.


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Keystone breach deepens: Hackers stole key used to verify wallets as genuine | TheMorningPulse.fyi