Trust Wallet Warns 36,000 Users to Move Funds After Browser Extension Incident Alert

Trust Wallet has issued a warning to approximately 36,000 users who may still be using compromised wallets linked to a browser extension issue in version 2.68. The affected users were notified via banners and mobile app alerts and are advised to create new wallets and move funds immediately. The issue does not impact the mobile application or other extension versions (according to reports).

Preliminary estimates suggest that up to $7 million may have been affected by the incident. Trust Wallet is actively investigating the event and has launched a claims process for affected users to recover their funds. The company emphasized the importance of verifying ownership before compensating any losses (according to company statements).

Initial findings indicate that the breach was linked to the browser extension environment rather than Trust Wallet's core systems. Browser-based wallets remain more vulnerable to phishing, malicious scripts, and compromised extensions (as research shows).

Why Did This Happen?

Trust Wallet's investigation traced the breach to a supply chain attack known as Sha1-Hulud. This attack exploited leaked GitHub secrets and a Chrome Web Store API key, allowing an attacker to upload a malicious extension that bypassed standard approval checks (according to technical analysis).

The compromised extension appeared legitimate and passed Chrome's review process but contained hidden code capable of extracting recovery phrases. Simply importing a seed phrase into the affected extension could trigger fund outflows across multiple blockchains (as revealed in the investigation).

What Are Analysts Watching Next?

Industry experts are closely monitoring how Trust Wallet manages its verification process and the timeline for resolving claims. CEO Eowyn Chen noted that some submitted claims were duplicates or potentially fraudulent, requiring cross-referencing with multiple data sources (according to company disclosures).

The company has rolled back to a clean release (version 2.69) and disabled compromised publishing credentials to prevent future issues. However, the Chrome Web Store bug that caused delays in the claims tool rollout has raised concerns about operational efficiency (as reported by industry analysts).

How Did Markets Respond?

The incident comes at a time when crypto exploit losses dropped over 60% in December 2025, according to PeckShield, but major breaches like the $50 million address-poisoning scam still occurred (according to market data).

Browser wallets such as Trust Wallet and Flow continue to highlight the risks of online storage compared to hardware wallets. Address poisoning and private key leaks remain significant threats, especially during high-traffic periods like holidays (as industry experts point out).

Trust Wallet's breach is among the most notable December incidents, alongside a $3.9 million Flow protocol hack. The total losses from crypto exploits in December reached $76 million (according to financial reports).

Users are advised to update their browser extension to version 2.69 or later and follow Trust Wallet's step-by-step guide for creating a new wallet and transferring funds. Trust Wallet also recommends backing up secret phrases and reviewing smart contract approvals (as per official guidance).

Binance, which acquired Trust Wallet in 2018, has confirmed it will cover verified losses tied to the breach. CEO Changpeng Zhao stated that users' funds remain protected despite the incident (according to company announcement).

As the investigation continues, Trust Wallet remains focused on resolving verified claims and publishing a full technical breakdown of the incident. The company also warned against fake compensation scams that may target affected users (as reported by security researchers).