Tech

CZ Comments on Trust Wallet Hack Loss of $7M, Vows to Support Users

4 hours ago
Bitcoin Ethereum News

Trust Wallet exploited, $6.77M stolen. CZ promises full reimbursement via SAFU. Affected users advised to update to version 2.69.

The exploit hit Trust Wallet, with attackers stealing over $6.77 million and impacting hundreds of users. The hacker transferred around $4.25 million to platforms like ChangeNOW, FixedFloat, KuCoin, and HTX.

In response, Binance CEO Changpeng Zhao (CZ) quickly assured the community that Trust Wallet would fully cover the losses through its Secure Asset Fund for Users (SAFU). CZ’s swift promise has been a reassuring move for affected users, aiming to restore trust in the platform.

Details of the Trust Wallet Hack and How It Happened

First, attackers targeted Trust Wallet’s browser extension specifically version 2.68 and then injected malicious code into the JavaScript files. This code enabled hackers to steal recovery phrases when users imported or viewed them.

Attackers sent the stolen data to servers they controlled, which allowed them to drain funds from the wallets.
The breach affected several major blockchains, including Bitcoin, Ethereum, and Solana, leading to significant financial losses for users.

No obvious warning signs preceded the attackers’ execution of the exploit. Unlike many other attacks, users did not need to click on phishing links or approve suspicious transactions.

Instead, attackers quickly drained funds after users imported their recovery phrases into the compromised extension.

Trust Wallet responded by releasing a patch (version 2.69) and urged users to disable the vulnerable extension and update immediately.

CZ’s Commitment to Reimbursing Victims through SAFU

CZ responded to the breach by assuring users that Binance’s SAFU fund would cover the losses from the hack. SAFU, established by Binance in 2018, is designed to protect users from losses in the event of a security breach.

CZ confirmed that the $7 million loss caused by the hack would be fully reimbursed, adding that “user funds are SAFU.” His prompt response has provided confidence to the community, ensuring that the victims will not bear the financial burden.

The statement from CZ was aimed at calming fears and reinforcing Binance’s commitment to user protection. The company’s quick action in offering financial support has played a critical role in restoring trust in Trust Wallet and Binance.

The SAFU fund, which is backed by Binance’s financial strength, offers a crucial safety net for users in these situations.

Related Reading: Analysing the Trust Wallet Hacker Wallet: Holding Over $4 Million With $1.5 Million in ETH and $1.4 Million in BTC

What Affected Users Should Do and Future Security Measures

For users affected by the hack, Trust Wallet has issued clear instructions to mitigate further losses. They are advised to disable the compromised browser extension, update to version 2.69, and transfer any remaining funds to a new wallet.

Additionally, users should avoid reusing compromised recovery phrases and consider using hardware wallets for added security, especially for larger amounts.

This incident serves as a reminder of the risks associated with using browser extensions for cryptocurrency management.

While Trust Wallet acted swiftly to patch the issue, the attack highlights the need for stronger security practices across the crypto industry.

As investigations continue, it is likely that Trust Wallet and other platforms will reassess their security protocols to prevent similar breaches in the future.

Source: https://www.livebitcoinnews.com/cz-comments-on-trust-wallet-hack-loss-of-7m-vows-to-support-users/

Tech

CZ Comments on Trust Wallet Hack Loss of $7M, Vows to Support Users

4 hours ago
Bitcoin Ethereum News

Trust Wallet exploited, $6.77M stolen. CZ promises full reimbursement via SAFU. Affected users advised to update to version 2.69.

The exploit hit Trust Wallet, with attackers stealing over $6.77 million and impacting hundreds of users. The hacker transferred around $4.25 million to platforms like ChangeNOW, FixedFloat, KuCoin, and HTX.

In response, Binance CEO Changpeng Zhao (CZ) quickly assured the community that Trust Wallet would fully cover the losses through its Secure Asset Fund for Users (SAFU). CZ’s swift promise has been a reassuring move for affected users, aiming to restore trust in the platform.

Details of the Trust Wallet Hack and How It Happened

First, attackers targeted Trust Wallet’s browser extension specifically version 2.68 and then injected malicious code into the JavaScript files. This code enabled hackers to steal recovery phrases when users imported or viewed them.

Attackers sent the stolen data to servers they controlled, which allowed them to drain funds from the wallets.
The breach affected several major blockchains, including Bitcoin, Ethereum, and Solana, leading to significant financial losses for users.

No obvious warning signs preceded the attackers’ execution of the exploit. Unlike many other attacks, users did not need to click on phishing links or approve suspicious transactions.

Instead, attackers quickly drained funds after users imported their recovery phrases into the compromised extension.

Trust Wallet responded by releasing a patch (version 2.69) and urged users to disable the vulnerable extension and update immediately.

CZ’s Commitment to Reimbursing Victims through SAFU

CZ responded to the breach by assuring users that Binance’s SAFU fund would cover the losses from the hack. SAFU, established by Binance in 2018, is designed to protect users from losses in the event of a security breach.

CZ confirmed that the $7 million loss caused by the hack would be fully reimbursed, adding that “user funds are SAFU.” His prompt response has provided confidence to the community, ensuring that the victims will not bear the financial burden.

The statement from CZ was aimed at calming fears and reinforcing Binance’s commitment to user protection. The company’s quick action in offering financial support has played a critical role in restoring trust in Trust Wallet and Binance.

The SAFU fund, which is backed by Binance’s financial strength, offers a crucial safety net for users in these situations.

Related Reading: Analysing the Trust Wallet Hacker Wallet: Holding Over $4 Million With $1.5 Million in ETH and $1.4 Million in BTC

What Affected Users Should Do and Future Security Measures

For users affected by the hack, Trust Wallet has issued clear instructions to mitigate further losses. They are advised to disable the compromised browser extension, update to version 2.69, and transfer any remaining funds to a new wallet.

Additionally, users should avoid reusing compromised recovery phrases and consider using hardware wallets for added security, especially for larger amounts.

This incident serves as a reminder of the risks associated with using browser extensions for cryptocurrency management.

While Trust Wallet acted swiftly to patch the issue, the attack highlights the need for stronger security practices across the crypto industry.

As investigations continue, it is likely that Trust Wallet and other platforms will reassess their security protocols to prevent similar breaches in the future.

Source: https://www.livebitcoinnews.com/cz-comments-on-trust-wallet-hack-loss-of-7m-vows-to-support-users/