JUST IN: CZ Confirms Trust Wallet Hack $7M+ Stolen, Users to Be Compensated

A malicious Trust Wallet browser extension update caused unauthorized wallet drains after users imported recovery seed phrases.

A sudden security incident during Christmas triggered concern across the global crypto market. Hundreds of users reported missing funds within hours. The event affected a widely used non-custodial wallet service. Attention quickly focused on a recent browser extension update. Investigations later confirmed losses exceeding $7M.

Trust Wallet Confirms Compromised Browser Extension Update

Trust Wallet confirmed a security incident involving its Chrome browser extension. The issue affected only the browser extension version 2.68. All other extension versions remained secure during the period. The mobile application was not affected at any stage.

The compromised update contained hidden malicious code. The code activated when users imported recovery seed phrases. Sensitive wallet data was silently sent to an external server. Attackers then gained access and transferred user funds.

Trust Wallet advised users to stop using version 2.68 immediately. The company instructed users to disable the extension through Chrome settings. An updated and patched version 2.69 was released shortly after. Official download links were shared to prevent further exposure.

$7M Drained Across Multiple Blockchain Networks

Blockchain investigators tracked losses totaling more than $7M. The stolen assets included Bitcoin, Ether, Stablecoins, and BNB. Subsequently, the affected wallets were spread across several major blockchain networks. These included Ethereum, Bitcoin, Solana, and BNB Chain.

Most losses occurred within a narrow time frame. Wallets were drained without approvals or visible transaction prompts. Users reported no warning signs before balances dropped to zero. The exploit operated silently in the background.

Moreover, on-chain data revealed rapid movement of stolen funds. A portion of assets was routed through centralized exchanges. Some funds were sent to swap platforms and mixing services. Investigators continue tracking remaining balances across addresses.

Related Readings: Trust Wallet Browser Extension Hack Triggers $6M User Losses

Company Response, Reimbursement, and Ongoing Investigation

Following the incident, Trust Wallet stated that affected users would receive full reimbursement. Changpeng Zhao confirmed that the company would cover verified losses. Furthermore, he stated that user funds would remain protected. The company began contacting affected users directly.

Internal reviews were launched to identify the source of the breach. Attention is focused on the extension update submission process. The investigation aims to determine how the malicious code passed checks. Trust Wallet stated that security procedures are under review.

The company emphasized that blockchains themselves were not compromised. Only the browser extension version 2.68 was involved. Additionally, users were advised to avoid importing seeds into browser extensions. Hardware wallets were recommended for holding larger balances.

Subsequently, the Trust Wallet token experienced short term price movement. Prices dipped briefly following public disclosure of the incident. Market data later showed a partial recovery. No trading halts or network disruptions were reported.

Trust Wallet stated it would provide further updates. Guidance on refunds will be shared through official channels. Users were advised to follow verified announcements only. The investigation remains ongoing at the time of reporting.

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