Hackers Exploit Trust Wallet Flaw, Siphon $6M in Digital Assets

Trust Wallet Security Breach: A Critical Vulnerability in Browser Extensions

Trust Wallet, a popular browser extension wallet for Ethereum and other blockchain networks, confirmed a critical security vulnerability in version 2.68 of its Chrome extension. The issue led to the theft of at least $6 million in digital assets from hundreds of users according to reports. On-chain investigator ZachXBT reported the breach, linking it to abnormal transactions that emerged shortly after the extension's recent update. Trust Wallet urged users to immediately disable and upgrade to version 2.69 to mitigate further losses according to the security alert.

The vulnerability appears to follow a pattern seen in past breaches involving browser extensions. In 2022, Trust Wallet's extension had a WebAssembly flaw that led to $170,000 in stolen funds. MetaMask and Phantom also faced similar issues, including memory exposure and unencrypted private keys. Despite these recurring incidents, direct official vulnerabilities remain relatively rare compared to phishing schemes and counterfeit downloads that often target major wallet users.

Security experts emphasize the risks associated with browser extensions. Unlike mobile wallet apps, extensions typically require broader access to a user's system and are more susceptible to compromised updates or supply chain attacks. This latest breach occurred during the holiday season, when users are often less vigilant and security teams may operate with reduced staff. Trust Wallet has not yet announced compensation plans for affected users, but it has committed to providing ongoing updates as it resolves the issue.

Why the Standoff Happened

The Trust Wallet breach highlights a growing challenge in the crypto industry: the vulnerability of browser extensions. These tools are convenient but inherently more exposed than mobile or hardware wallets. The Trust Wallet issue was specific to version 2.68, and users who updated to 2.69 are now advised to avoid using the browser extension until the fix is fully implemented according to the security advisory.

Phishing and counterfeit extensions have also contributed to rising losses in the crypto ecosystem. A 2025 Chainalysis report noted a significant spike in abnormal thefts driven by fake versions of popular wallets rather than flaws in the software itself. Trust Wallet has confirmed that only users of the 2.68 extension were affected, while mobile app users and other extension versions remained secure according to the investigation.

How Markets Reacted

The news has added to an already volatile year for crypto security. Total digital asset thefts in 2024 reached $3.4 billion, according to Chainalysis according to Chainalysis data. North Korean-linked groups have been responsible for some of the largest breaches, including the $1.5 billion Bybit exchange hack earlier in the year. The Trust Wallet incident is another blow to the industry's confidence in browser-based wallet security.

Trust Wallet, which is owned by Binance, has faced increasing scrutiny over its security practices. While Binance has maintained a strong security record on its exchange, associated products and services have seen vulnerabilities that raise concerns about broader oversight. Analysts warn that browser extensions remain a high-risk vector for hackers, particularly as crypto adoption grows.

What This Means for Investors

For crypto users, the incident underscores the need for vigilance and proactive security measures. Trust Wallet has reiterated advice to verify extensions before installation, only download from official stores, and consider hardware wallets for significant holdings. Users are also encouraged to review active permissions and keep their software up to date to reduce exposure to phishing and counterfeit apps according to the security guidance.

The broader crypto wallet security landscape is deteriorating, with address poisoning attacks alone costing users over $100 million in 2024. These attacks involve criminals sending small amounts from similar-looking addresses to manipulate transaction histories, leading users to mistakenly send funds to attacker-controlled wallets. The Trust Wallet breach reinforces the importance of adopting more robust security protocols across all crypto infrastructure.

Affected users are advised to follow Trust Wallet's official communications for updates and document all transactions related to the incident. While Trust Wallet has not announced a compensation plan, users are encouraged to report incidents through proper channels and stay informed about any potential recovery options. The company has committed to transparency and swift resolution, which will be closely watched by the cryptocurrency community according to the official statement.