Trust Wallet users lost approximately $7 million worth of cryptocurrency after hackers compromised the platform's browser extension version 2.68 on Dec. 24. Binance co-founder CZ confirmed the wallet provider will reimburse all affected users.
What Happened: Extension Compromise
The breach affected accounts across Ethereum Virtual Machine networks, Bitcoin and Solana blockchains, with fund transfers continuing for more than 30 hours before Trust Wallet issued a public statement.
User complaints first surfaced Dec. 24 indicating complete wallet drains following seed phrase entry into Trust Wallet's browser extension. The vulnerability affected only version 2.68 of the browser extension, while mobile users remained unaffected.
Cryptocurrency investigator ZachXBT traced stolen funds to multiple addresses. One newly created EVM wallet collected transactions ranging from fractional ETH amounts to 7 ETH, with a single address still holding over 255 ETH worth approximately $750,000.
Bitcoin network theft exceeded 12 BTC through 66 transactions to one address alone, totaling more than $1 million, while additional wallets received 1.5 BTC. Fund transfers continued until late Dec. 25, spanning over 30 hours from initial reports.
Trust Wallet remained silent for more than 30 hours before acknowledging the security incident. The company directed users to disable version 2.68 and upgrade to version 2.69 through the official Chrome Web Store.
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Why It Matters: Platform Security
CZ announced Binance-backed Trust Wallet will cover all losses from the hack.
"User funds are SAFU," he wrote, using cryptocurrency slang for "secure."
The incident raises questions about Trust Wallet's code review process, as CZ noted the team is investigating how hackers submitted a compromised version through official channels. Browser extension wallets require users to enter seed phrases during setup, creating potential vulnerability points if malicious code captures this sensitive information.
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