Blockchain security expert ZachXBT has warned that hundreds of Trust Wallet users have lost funds without their permission, with total losses estimated at over $6 million. The problem seems linked to the December 24 update of Trust Wallet’s Chrome browser extension, but the exact cause is still unknown.
Users reported that their crypto assets were drained from their wallets without any action on their part. In response, ZachXBT is collecting wallet addresses that may have been affected to help track the incident.
Trust Wallet users are advised to carefully check their recent transactions, remove any unnecessary permissions, and avoid making new transactions until more information is available. Moving remaining funds to a new wallet with fresh seed phrases is also recommended to prevent further losses.
This incident highlights the risks of browser-based crypto wallets, where even a single compromised update can put users’ funds at risk. Staying alert and following security guidelines is crucial.
Trust Wallet Response
Trust Wallet has confirmed a security issue affecting its browser extension version 2.68. They advised all users to immediately upgrade to version 2.69 to stay safe. Users who only use the mobile app or other versions of the extension are not affected by this problem.
Changpeng Zhao, the founder of Binance and owner of Trust Wallet, reassured users that all funds remain safe. He also confirmed that Trust Wallet will cover any losses caused by this hack. According to Zhao, around $7 million was impacted in this incident.
He posted on X that user funds are SAFU, meaning secure and protected, and thanked the community for understanding during this situation.
Trust Wallet continues to investigate the matter and is working to provide updates. Users are encouraged to follow official announcements, upgrade their extension immediately, and take necessary precautions to protect their funds.
Potential Cause and Risks
The cause of the Trust Wallet hack is still being investigated, but experts believe it could be a supply chain attack. The recent update to the Trust Wallet browser extension may have included hidden code that tracked user activity and possibly captured seed phrases or transaction details.
Browser-based wallets are more at risk because extensions have high permissions, so even one compromised update can lead to significant fund losses.
Security Tips for Users:
- Disable the affected extension and update to the latest version immediately.
- Move your funds to a new wallet with a fresh seed phrase.
- Avoid using the wallet on devices or networks that might be unsafe.
- Monitor transactions carefully for any unusual activity.
This incident highlights the growing number of crypto wallet hacks, with over $3.41 billion stolen this year alone. Users should remain cautious and follow Trust Wallet’s official guidance.
