Michaela
Non-custodial crypto wallet Trust Wallet has opened a compensation process after a compromised Chrome extension update exposed seed phrases and led to millions in crypto losses.
Key Points
- Trust Wallet’s Chrome extension version 2.68 was compromised, exposing seed phrases and causing millions in losses.
- Affected users can claim compensation via an official submission form; $7M in funds is being reimbursed.
- The incident emphasizes risks of browser-based crypto wallets and the need for cautious security practices.
“We’ve confirmed that approximately $7M has been impacted and we will ensure all affected users are refunded,” Trust Wallet wrote on an X post, updating its users regarding the incident. Trust Wallet said impacted users are required to submit an official claim form to begin the reimbursement process, adding that victim cases are being prioritized and are already under review.
Affected users are required to submit key information for the claims process, including their email, country of residence, compromised wallet addresses, suspected attacker addresses, and relevant transaction hashes.
“We apologize and acknowledge that this situation has been frustrating and disruptive. We are working around the clock to finalize the compensation process details and each case requires careful verification to ensure accuracy and security,” Trust Wallet added.
Related: Shiba Inu Defies Flat Prices As Latest Netflows Explode
Trust Wallet confirmed the breach on December 25, disclosing that only version 2.68 of its Chrome browser extension was affected, later urging users running the compromised 2.68 version to disable it immediately and ugrade to the 2.69 version.
Blockchain investigator ZachXBT, who first flagged the incident after multiple users reported unauthorized fund withdrawals following the compromised update, said the number of affected users rose into the hundreds within hours, with millions lost across blockchains including Bitcoin, Solana, and EVM-compatible networks.
Related: Latest Triple-Digit Burn Surge Precedes Potential Shiba Inu Price Breakout
The Trust Wallet breach spotlights the growing risks facing users of browser-based crypto tools and highlights the importance of vigilant security practices. While the company has moved quickly to compensate victims and patch the vulnerable extension, the incident serves as a stark reminder that even widely trusted platforms are not immune to sophisticated attacks.
Experts advise users to remain cautious with browser extensions, regularly update software, and store seed phrases offline whenever possible. As the crypto ecosystem continues to expand, incidents like this may prompt broader discussions on industry-wide security standards and regulatory oversight, aiming to protect digital assets while maintaining the convenience and accessibility that wallets like Trust Wallet provide to millions of users worldwide.
Frequently Asked Questions
MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
