Trust Wallet, backed by Binance co-founder Changpeng Zhao, confirmed a hack affecting its Chrome extension on December 25, leading to $7 million in stolen user funds.
The incident underscores security vulnerabilities in browser-based cryptocurrency tools, prompting Trust Wallet to upgrade and assure users of fund safety, with Binance emphasizing reimbursement.
Trust Wallet Chrome Version 2.68 Security Breach
Trust Wallet confirmed a security incident affecting its Chrome extension version 2.68. The company reassured users that the funds will remain protected.
Changpeng Zhao, Binance's co-founder, announced via X (formerly Twitter), a $7 million impact due to the hack while promising affected users that their funds are protected.
"So far, $7m affected by this hack. @TrustWallet will cover. User funds are SAFU. Appreciate your understanding for any inconveniences caused. The team is still investigating how hackers were able to submit a new version." - Changpeng Zhao, Co-founder, Binance
User Action Triggered by $7 Million Hack
The hack has spurred immediate action from users to upgrade to version 2.69. Trust Wallet has already committed to handling users' losses.
Potential implications include heightened regulatory scrutiny and technological improvements to prevent future vulnerabilities, backed by data on other crypto wallet exploits. Trust Wallet aims to secure user funds and systems.
"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." - Trust Wallet official account
No Precedents in Trust Wallet Breaches
No direct precedents for such a security breach in Trust Wallet's history were found. The scenario might echo supply chain attacks on similar crypto wallet extensions.
From a financial standpoint, analysts suggest examining past supply chain vulnerabilities for improvement paths, urging quick adoption of best practices to bolster defenses.
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