On December 24, 2025, Trust Wallet’s Chrome extension faced a security breach, impacting over $7 million in user assets. Key figures include Binance co-founder Changpeng Zhao and investigator ZachXBT.
The incident underscores vulnerabilities in crypto software, highlighting security gaps with significant financial loss. Binance’s reimbursement via the SAFU fund attempts to restore reputation amidst rising scam risks.
Trust Wallet Update Compromised, Costs Users $7 Million
The Trust Wallet Chrome extension version 2.68.0 was breached, leading to approximately $7 million in drained user funds. The incident involves the wallet’s operators and Binance’s co-founder Changpeng Zhao.
Binance committed to fully reimburse affected users via its SAFU fund. The Trust Wallet team quickly responded by removing the compromised update and issuing corrective action. These moves highlight the company’s efforts to maintain security.
Hack Compromised User Seed Phrases and Prompted Binance Action
The breach affected multiple wallet users, with seed phrases exfiltrated during extension unlocks. On-chain investigator ZachXBT identified drained wallet patterns swiftly, alerting community members to secure their holdings.
Financial compensation was assured by Binance, reflecting routine security practices to maintain trust. Historical attacks show rising concerns as the crypto sector lost approximately $713 million to silent attack surfaces in 2025.
So far, $7m affected by this hack. Trust Wallet will cover.
Recurring Chrome Extension Risks Amplify During Holidays
Comparable incidents, like the 2023 Chrome extension vulnerability, resulting in six-figure losses, demonstrate persistent risks. These events traditionally spike during holidays, leveraging user inattention.
Crypto KOL comments emphasize vigilance in extension updates and proper multi-factor authentication integration to prevent future breaches. This mirrors trends of social engineering’s role in contemporary security lapses.
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