Keystone Halts Wallet Shipments After Factory Key Stolen, 25,964 Buyer Records Exposed

This is a trust problem before it is a fund-safety problem. The stolen factory key does not touch recovery phrases or private keys, but it undermines the verification step buyers rely on to distinguish genuine hardware from counterfeits — a step that matters most in the resale and secondary market, where a device passing as authentic is the buyer's only assurance. The exposure of buyer records adds a separate privacy concern. The open question is whether Keystone can re-establish a verification method that counterfeiters cannot spoof with the compromised key.