Keystone Hackers Stole Key Allowing Fake Wallets to Pass Checks

The escalation from a data leak to the theft of a verification key shifts this from a privacy problem to a trust problem for Keystone's core selling point: that its devices are provably genuine. For hardware wallet users, the concern is less what was taken than what it now enables—counterfeit devices that pass the checks meant to catch them, which matters most in secondary and resale markets where buyers rely on those checks. Whether Keystone details how the key was compromised and how verification can be restored is the open question.