Hack: Trust Wallet Begins Compensation Process After Hack

Trust Wallet confirms a browser extension breach affecting $7 million, launches refunds, details attack flows, and outlines security response steps.

Trust Wallet has confirmed a security breach affecting its Chrome browser extension version 2.68. The incident caused disruptions to users all over the world. Moreover, the company accepted the failure of operations publicly. As a result, Trust Wallet initiated a systematic compensation procedure for affected users.

Trust Wallet Confirms Breach Linked to Malicious Browser Code

The breach happened because malicious code found its way into extension version 2.68. This code solicited authorless authorization for mnemonic phrases. As a result, the attackers were granted access to wallets.

About $7 million worth of digital assets were affected. Onchain analysis revealed that $6.77 million was directly stolen. The losses impacted the Bitcoin, Solana, and EVM compatible networks. However, users who were mobile-only were not exposed to anything.

Related Reading: Trust Wallet Hack News: Trust Wallet Browser Extension Hack Triggers $6M User Losses | Live Bitcoin News

Blockchain data shows hundreds of wallets were hacked. Attackers transferred about $4.25 million via exchanges. These platforms included ChangeNOW, FixedFloat, KuCoin, and HTX. Such routing complicated asset tracing.

Trust Wallet said the malicious version was rapidly removed. Internal monitoring revealed abnormal extension behavior. Therefore, distribution of version 2.68 was stopped. Users were advised to update immediately.

The company emphasized there were other extension versions that were secure. In addition, mobile applications were not affected during the incident. This distinction limited greater ecosystem damage. Nonetheless, reputational risk was important.

Trust wallet launched a formal compensation process shortly after being detected. Affected users need to submit claims using an official support form. Meanwhile, checking teams had started to check verify wallet data. Each case is subjected to transaction level validation.

The company apologized for disruption and financial stress. It recognized delays were frustrating to users. Moreover, Trust Wallet stated that teams work constantly. Accuracy and security are still at the heart of the refund processing.

Binance CEO Changpeng Zhao came public with his stance on the incident. Through the Secure Asset Fund for Users, he affirmed full reimbursement. SAFU has been known to cover previous losses that exceed $1 billion in the past.

Refund Commitments Highlight Growing Focus on Wallet Security

Trust Wallet confirmed all verified victims will be provided with full refunds. The company repeated this commitment through X. It said refunds would be of the same magnitude as confirmed losses. Instructions will follow after the verification.

The compensation process consists of a number of validation stages. These include wallet ownership confirmation and reviewing transactions. Therefore, refunds can take some time. However, priority is still with affected users.

This breach raises the danger of browser-based wallet infrastructure. Extensions are used to manage sensitive recovery credentials. As a result, they are still high-value attack targets. Industry experts focus on layered security controls.

Regulators are paying more attention to crypto wallet security standards. Compliance expectations are still increasing worldwide. Therefore, providers need to bolster operational safeguards. This regulatory pressure is reflected in Trust Wallet’s response.

Trust Wallet said it is reworking internal security processes. Additional code audits are planned every quarter. In addition to this, there are third-party security firms that will help. These are measures to reduce future vulnerabilities.

The incident also served to resurrect the topic of user security practices. Experts emphasize cautious extension of permissions. Avoiding unverified updates is crucial nonetheless. User education is an adjunct to platform security.

In spite of the breach, Trust Wallet reaffirmed its long-term commitment. Transparency and restitution are still priorities. In addition, quick acknowledgment contributed to curbing more extensive harm.

Ultimately, the process of paying compensation is a step of recovery. Affected users now wait for refunds. Meanwhile, Trust Wallet carries on with remediation efforts. The sector remains watchful.