Trust Wallet, a cryptocurrency wallet platform, experienced a security breach on Christmas Day, resulting in the loss of approximately $7 million in user funds. Changpeng Zhao (CZ), the founder of Binance, which acquired Trust Wallet in 2018, has assured affected users that the platform will cover the losses.
The breach targeted users of the Trust Wallet browser extension, specifically version 2.68. Hackers exploited a vulnerability in this version to extract users' seed phrases, gaining unauthorized access to their wallets. This allowed them to drain funds across multiple blockchains, including Bitcoin, Ethereum, Solana, and BNB Chain.
On-chain investigator ZachXBT was among the first to detect the issue and alert the community. Trust Wallet promptly responded by releasing version 2.69 of the browser extension, which includes a fix for the vulnerability. The Trust Wallet team has urged users of version 2.68 to immediately disable the extension and upgrade to the latest version. They also clarified that mobile-only users and users of other browser extension versions were not affected by the breach.
CZ took to social media to address the situation, stating, "So far, $7m affected by this hack. Trust Wallet will cover. User funds are SAFU," using a common crypto acronym that stands for "Secure Asset Fund for Users". He also mentioned that the team is actively investigating how the hackers managed to submit a malicious version of the browser extension. Some reports suggest CZ hinted at possible insider involvement in the hack.
Several users reported significant losses due to the hack, with some individuals claiming to have lost hundreds of thousands of dollars. Trust Wallet has stated that its support team is contacting affected users to guide them through the compensation process.
The Trust Wallet breach is part of a growing trend of cryptocurrency hacks and exploits. In 2025, over $3.14 billion in cryptocurrency has been stolen. This incident serves as a reminder of the importance of practicing good security habits, such as being vigilant against phishing scams and avoiding the use of compromised software. Trust Wallet has amplified its commitment to user education surrounding security best practices.
