Trust Wallet’s $7M Extension Breach: How the Crypto Giant is Moving to Reimburse Users

A browser extension becomes a multi-million-dollar backdoor—and the race to make users whole begins.

Trust Wallet, one of the industry's most recognizable self-custody names, is navigating the fallout after a security flaw in its browser extension led to significant losses. The incident underscores the persistent tension in crypto: the promise of self-sovereignty versus the peril of being your own security chief.

The Breach Mechanics

The vulnerability wasn't in the core mobile application but resided in the wallet's browser extension. Attackers exploited this specific vector, siphoning funds from users who had interacted with the compromised component. It's a stark reminder that in decentralized finance, every added feature is a new potential attack surface.

The Reimbursement Pivot

In a move closely watched by the community, Trust Wallet has committed to covering the losses. The reimbursement process, targeting the full $7 million figure, is now underway. This decision sets a precedent, placing user protection directly against the 'code is law' ethos that often leaves victims with little recourse—a welcome dose of traditional accountability in a famously untraditional space.

The Bigger Picture

For a sector that sells security as a primary feature, breaches are more than just operational hiccups—they're existential marketing crises. Every incident fuels the narrative for skeptics who see crypto as a high-tech wild west. Yet, the proactive reimbursement strategy is a calculated bet on long-term trust, arguably more valuable than any short-term capital reserve. After all, what's a few million dollars against the potential future of finance? Just ask the bankers who spent that much on a single weekend's worth of, well, trust-building.

The takeaway is clear: as crypto matures, so must its safety nets. User funds can't just be a line item in a risk assessment. Trust Wallet's response shows that surviving a crisis isn't about avoiding mistakes—it's about how fast and fully you own them.

Trust Wallet Reports $7,000,000 Losses & Commits to Offer Full Refund

IT has has announced that it experienced a $7 million loss due to a security event on Christmas Day with its browser extension. Trust Wallet posted on their social media platform X, and upon investigation, they believe that they have sufficiently determined the amount of losses from this event.

They have stated that customer service is their number one priority and have pledged to fully refund all customers who were affected.

Update on the Trust Wallet Browser Extension (v2.68) incident:

We’ve confirmed that approximately $7M has been impacted and we will ensure all affected users are refunded.

Supporting affected users is our top priority, and we are actively finalizing the process to refund the… https://t.co/2XRx8GvZ75

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Incident Linked to Browser Extension Version 2.68

The company reiterated that the breach was limited exclusively to version 2.68 of its browser extension. Users running that version were urged to disable it immediately and upgrade to version 2.69 via the official Chrome Web Store. Trust Wallet stressed that mobile-only users and all other extension versions were not affected and warned users not to interact with messages from unofficial channels.

We’ve identified a security incident affecting Trust Wallet Browser Extension version 2.68 only. Users with Browser Extension 2.68 should disable and upgrade to 2.69.

Please refer to the official Chrome Webstore LINK here: https://t.co/V3vMq31TKb

Please note: Mobile-only users…

CZ Says Insider Involvement “Most Likely”

Changpeng Zhao, the creator of Binance, stated prior that Trust Wallet WOULD be responsible for the losses incurred, and user funds were “SAFU” (safe) as part of a reassurance to its customers.In a follow-up reply on X, Zhao added that insider involvement was “most likely” as investigations continued.

According to blockchain security expert Yu Xian from TrustMist, the hacker began their preparations as early as the first week of December, created a backdoor in Trust Wallet on December 12, and began transferring funds through Trust Wallet into their own accounts on December 25.

Most likely.

New wallet attacks are becoming more common throughout the crypto industry as reported by Chainalysis, which estimates the total number of individual wallet incidents at approximately 158,000, impacting at least 80,000 victims with total losses approaching $713 million. The total amount of stolen crypto in 2025 will exceed $3.4 billion.