Trust Wallet Makes Users Whole After $7M Chrome Extension Hack - Security Breach Turns into Industry Benchmark
Trust Wallet just flipped the script on crypto security failures—reimbursing every user affected by a $7M extension hack. No excuses, no delays.
The Incident: Extension Exploit
A vulnerability in the Chrome browser extension let attackers drain wallets. The exploit targeted a specific version—highlighting the constant cat-and-mouse game between developers and bad actors. Users woke up to empty balances, panic spread across forums, and the usual crypto cynics declared 'another day, another hack.'
The Response: Full Reimbursement
Trust Wallet didn't hide behind 'code is law' or decentralized platitudes. They identified affected addresses, calculated losses, and initiated repayments. The $7M hit came from company reserves—not insurance policies or token dilution. For an industry where losses often vanish into the blockchain void, this move stands out like a bull market at a central bank meeting.
Security Fallout & Industry Implications
Browser extensions remain soft targets—sandboxed but still exposed. The incident triggered immediate code audits, version deprecations, and renewed warnings about keeping software updated. Competitors watched closely; user reimbursement sets uncomfortable precedents in a space that often treats self-custody as 'your keys, your problem.'
User Trust & Market Positioning
By absorbing the $7M loss, Trust Wallet transformed a security disaster into a marketing masterstroke. User sentiment shifted from outrage to loyalty overnight. The move pressures other wallet providers to reconsider their liability policies—or risk looking indifferent when funds disappear.
Bottom line: Crypto's maturation requires absorbing blows that traditional finance would just package into derivatives and sell to pension funds. Trust Wallet took the hit directly—proving that in web3, sometimes the best investment isn't in tokens, but in user trust.
TWT holds steady despite $7M Trust Wallet exploit
The announcement follows Trust Wallet’s confirmation last week that its Chrome extension had been compromised. A malicious code was embedded in version 2.68 of the software. The wallet provider had mentioned that the attack turned out to be the theft of around $7 million worth of crypto assets. It covered all sorts of multiple blockchains, including Bitcoin, Ether, and Solana.
PeckShield, in a post, highlighted that more than $4 million of the stolen funds were quickly routed through centralized services. This involved ChangeNOW, FixedFloat, and KuCoin. Around $2.8 million remained in attacker-controlled wallets.
The Trust Wallet Token (TWT) hasn’t seen much downturn amid the latest hack. TWT price jumped by 8% in the last 7 days. It has remained down by around 9% over the past 30 days. It is trading at an average price of $0.93 at the press time. On the other side, Binance’s BNB has enjoyed the upside of the market. BNB price is up by 7% in the last 7 days. It is trading at an average price of $911.29 at the press time.
A calm in the tokens’ price comes in when Trust Wallet said it launched a formal claims process for affected users. It required details such as compromised wallet addresses, attacker addresses, and transaction hashes.
Binance steps in
Binance acquired Trust Wallet in 2018. Its co-founder CZ also confirmed that all verified losses will be covered. “So far, $7m affected by this hack. TrustWallet will cover,” Zhao wrote on X. He added that user funds are “SAFU.”
The incident first came to light after on-chain investigator ZachXBT warned on Telegram that multiple Trust Wallet users reported funds being drained. This happened shortly after updating the extension on December 24. Trust Wallet issued a patched release — version 2.69 — on December 25.
Trust Wallet CEO Eowyn Chen later said the breach stemmed from a leaked Chrome Web Store API key. This allowed attackers to publish the compromised extension without going through the company’s internal release process.
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