Tech

Trust Wallet Hack Drains $7M: Was It an Insider Hack?

5 hours ago
Bitcoin Ethereum News

Key Notes

  • A browser extension hack targeting Trust Wallet users resulted in millions of dollars in stolen crypto.
  • The issue was allegedly due to a bad extension update — version 2.68.
  • Mobile wallet users were safe, but the company urged web users to upgrade the browser extension.

Trust Wallet, a non-custodial crypto wallet owned by Binance co-founder Changpeng “CZ” Zhao, has confirmed a security incident involving its browser wallet extension, resulting in $6.77 million in user losses.

According to an X post by Lookonchain, the hacker sent $4.25 million of the stolen funds to centralized crypto exchanges and platforms like KuCoin, HTX, ChangeNOW, and FixedFloat.


On-chain data show that the attacker stole a range of digital assets from Trust Wallet users, including

BTC
$88 384



24h volatility:
0.7%


Market cap:
$1.77 T



Vol. 24h:
$37.05 B

,

ETH
$2 954



24h volatility:
0.5%


Market cap:
$356.65 B



Vol. 24h:
$17.26 B

, USDT, USDC, and

BNB
$840.0



24h volatility:
0.3%


Market cap:
$115.71 B



Vol. 24h:
$976.76 M

, among others.

The issue affected version 2.68 of the browser extension, Trust Wallet wrote in its statement. The company urged its users to update their wallets to version 2.69 immediately to avoid further losses.

The incident appears linked to malicious code in the extension that triggered when users imported a seed phrase.

Trust Wallet confirmed that mobile users and other extension versions were not affected.

CZ Promises Compensation

Zhao, who owns a majority stake in Trust Wallet, said that the company will “cover” the user losses.

Insider Hack?

In response to Zhao’s X post, some community members alleged that the hack was an insider job because of simple flaws in the platform’s code.

“There aren’t even Unicode letters in this; it’s literally screaming, ‘I’m phishing.’ How could no one, no automated unit test, no procedure catch this?” Jay Nasr, the chief technology officer at Kuvi and Altura, responded.

Some users emphasized that only returning the funds won’t guarantee a similar incident won’t happen and urged Trust Wallet to “tighten the loopholes.”

Trust Wallet Token Price Affected

The Trust Wallet Token (TWT) fell from $0.82 to $0.76 just a few hours after the hack, but soon regained traction. TWT is currently back to the $0.82 zone, with a market cap of $353 million.

According to data from DefiLlama, Trust Wallet made a $13.59 million profit in 2025 so far, a 25% decline from 2024’s $18.13 million profit.

The leading crypto wallet claimed last week that its user base had crossed 220 million in 2025.

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Wahid Pessarlay

Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.

Wahid Pessarlay on X


Source: https://www.coinspeaker.com/trust-wallet-hack-drains-7m-was-it-an-insider-hack/