Hardware wallet manufacturer Keystone announced the destruction of 18,835 inventory devices equipped with compromised verification keys following a security incident that exposed 25,964 customer records. Attackers obtained device keys capable of manufacturing counterfeit hardware wallets that pass official website verification checks. In response, Keystone has halted shipments of unfulfilled orders until new-key devices enter production and reduced its customer data retention period from 180 days to 90 days. The company warned users who received devices after October 20 featuring old verification keys to contact customer service for additional authentication, as passing online checks does not fully eliminate counterfeiting risks.