Keystone to Destroy 18,835 Hardware Wallets After Verification Key Breach

The permanent factory key is the root of trust for verifying device authenticity, so its compromise undermines the attestation model itself, not just individual units — hence destroying unsold inventory rather than reissuing firmware. This matters most for buyers awaiting shipments and for Keystone's retail credibility, while existing holders are told their keys and phrases were untouched. The open question is whether the exposed buyer records and the loss of a verifiable supply chain push customers toward competing wallet makers, and how regulators in the notified jurisdictions respond.