Binance Founder CZ Guarantees Full Reimbursement After Trust Wallet Extension Hack
In a significant security incident impacting the cryptocurrency ecosystem, Trust Wallet's browser extension suffered a major breach, resulting in over $6 million in user funds being stolen. The exploit, which specifically targeted version 2.68 of the extension, was first identified by prominent on-chain researcher ZachXBT. This event underscores the persistent security challenges within the digital asset space, particularly concerning third-party wallet interfaces. In a decisive move to maintain user trust and market stability, Changpeng 'CZ' Zhao, the founder of Binance—which acquired Trust Wallet in 2018—has publicly committed to fully compensating all affected victims. The swift emergency update to version 2.69 and the assurance of reimbursement highlight the industry's evolving, albeit reactive, approach to security crises. While the mobile application users remained unscathed, the attack vector, suspected to be a compromised extension update, is currently under thorough investigation. This incident serves as a critical reminder for users about the importance of software updates and the inherent risks associated with browser-based crypto tools. As of December 28, 2025, the broader market implications are being watched closely, with the proactive compensation pledge from a major industry figure like CZ potentially mitigating long-term reputational damage and reinforcing the narrative of accountable leadership in decentralized finance.
Trust Wallet Hack Drains $6M Amid Extension Vulnerability
Trust Wallet disclosed a security breach affecting its browser extension version 2.68, leading to over $6M in stolen user funds. The exploit, detected by on-chain researcher ZachXBT, prompted an emergency update to version 2.69. Mobile users remain unaffected.
Binance founder Changpeng 'CZ' Zhao pledged full compensation for victims. The attack vector—a compromised extension update—is under investigation, with unusual outflows traced to December 24. Trust Wallet had recently gained traction for integrating prediction markets prior to the incident.
Trump-Linked World Liberty Financial Rallies 8% Amid Stablecoin Milestone
World Liberty Financial (WLFI) surged 8.3% over the past week, defying broader crypto market headwinds. The rally coincides with its USD1 stablecoin crossing $3 billion in market capitalization—a milestone amplified by Binance's rewards program for holders.
Despite short-term gains, WLFI remains down 13.5% monthly. The sustainability of this rally remains uncertain as macroeconomic pressures continue to weigh on digital assets.
Trust Wallet Security Breach Impacts Desktop Users, $6-$7 Million in Crypto Stolen
Trust Wallet's browser extension suffered a supply chain attack targeting version 2.68, resulting in losses of $6-$7 million across major cryptocurrencies including Bitcoin (BTC), ethereum (ETH), and Solana (SOL). The vulnerability allowed hackers to inject malicious code during the update process, specifically affecting Chrome desktop users.
Parent company Binance moved swiftly to contain the damage, releasing patched version 2.69 through the official Chrome Webstore. 'Mobile app users remain unaffected,' the security bulletin emphasized, while urging immediate migration to the updated extension. The incident highlights persistent security challenges in browser-based crypto storage solutions.
WazirX-Binance Ownership Dispute Escalates to Litigation
The protracted ownership dispute between Indian crypto exchange WazirX and global giant Binance has entered formal litigation, according to WazirX founder Nischal Shetty. The conflict stems from contradictory claims about Binance's 2019 acquisition of WazirX, with both parties presenting opposing narratives about the transaction's validity.
Shetty revealed the legal development during an interview with TheStreet Roundtable, characterizing the standoff as a "he said, she said" scenario that now requires judicial resolution. The dispute gained renewed attention following WazirX's July 2024 security breach, though Shetty declined to comment on whether Binance had contacted WazirX post-hack, citing sub-judice considerations.
Why Is Sentism AI Down Today: Reasons Behind 62% Crash and What Next?
Sentism AI, a rising star in the AI-driven crypto space, has seen its token price collapse by 62% in a matter of days. The project, which provides on-chain infrastructure for autonomous investing and DeFi workflows, had surged from its listing price of $0.05258 to an all-time high of $0.5133 by mid-December. However, the rally was short-lived as the token plummeted nearly 84%, erasing weeks of gains.
The primary catalyst for the crash appears to be the Binance Alpha airdrop, which distributed 320 SENTIS tokens to holders of 240 Alpha Points. While the airdrop increased token circulation, it also triggered massive selling pressure as recipients rushed to cash in on their rewards. The token now trades around $0.06902, with a market cap of $14.25 million and $51.77 million in 24-hour volume—signaling panic-driven trading activity.
Bitcoin Closes Q4 with Steep Losses as Bearish Signals Mount
Bitcoin's 2025 fourth-quarter performance paints a grim picture for crypto investors. The flagship cryptocurrency shed 30% of its value after peaking at $126,200 in early October, now struggling to hold the $92,000 support level. Repeated rejections at higher prices suggest waning demand—a classic bear market signature.
Analyst GugaOnChain notes the -19.15% quarterly return marks Bitcoin's worst Q4 performance since the 2022 crypto winter. Key metrics like the Spent Output Profit Ratio (SOPR) at 0.99 show investors are capitulating, selling at losses. The MVRV-STH ratio languishing at 0.87 further confirms short-term holders are underwater.
Market structure echoes previous prolonged downturns. Unless Bitcoin reclaims $100,000 decisively, traders should brace for sideways-to-lower action through Q1 2026. 'This isn't a dip to buy—it's a market rewiring risk appetites,' remarks a veteran OTC desk trader at Binance.
