Trust Wallet Users Lost $7 Million in Cryptocurrency Due to Hack

RBK-cryptoОпубліковано о 2025-12-26Востаннє оновлено о 2025-12-26

Анотація

On December 26, the team behind Trust Wallet, a popular cryptocurrency wallet owned by Binance, reported a security breach affecting the browser extension version 2.68. According to Binance founder Changpeng Zhao, the incident was the result of a hack, resulting in losses of approximately $7 million. Users of the compromised version were advised to disable or uninstall it and upgrade to the secure version 2.69. The breach did not impact the mobile application. Trust Wallet's native token (TWT) initially dropped around 7% in price but recovered after the official announcement. Zhao stated that Trust Wallet would cover all user losses and urged affected individuals to contact support. Although no official cause was confirmed, reports suggest that version 2.68 contained hidden malicious code that intercepted users' secret recovery phrases during wallet imports, sending them to an external server. This allowed attackers to gain full access to affected wallets. Some community members, including Zhao, suspect the breach may have been an inside job involving a team member.

On the night of December 26, the team of the popular cryptocurrency wallet Trust Wallet reported a security breach that affected the browser application version 2.68. As explained by Binance founder and head of YZi Labs, which owns Trust Wallet, Changpeng Zhao, the incident occurred as a result of a hacker attack, and the damage amounted to $7 million.

Users of version 2.68 should disable or delete this build and only then install the new version 2.69, and under no circumstances should they open or use the unsafe version. The hack only concerns the browser version 2.68 and did not affect the mobile application.

The native token of Trust Wallet (TWT) reacted with a price drop of about 7%, falling for three hours before the team's announcement around 01:20 Moscow time on December 26. After the official announcement, the TWT price recovered to previous levels and the asset is trading slightly below $0.83.

Zhao stated that Trust Wallet will cover all user losses, and affected users were asked to write to the wallet's support service, a link to which can be found on the official website.

No official statements have been made regarding the causes of the hack. But its essence, according to a report by user Akinator on social network X, may be that a hidden malicious code was embedded in version 2.68 of the Trust Wallet browser extension. Akinator was one of the few who reported the hack several hours before the official confirmation from Trust Wallet.

The assumption is that when a user enters their secret phrase to import a wallet, this code stealthily intercepts the data and sends it to an external server. In this way, the attackers could gain full access to the users' wallets and funds.

The crypto community believes that the malicious code was embedded by someone from the cryptocurrency wallet team. In response to a suggestion by X user under the nickname Crazino.eth that the hack was "certainly carried out by an insider working in the team," Zhao replied "probably."

Broke the cycle. How the price of Bitcoin changed over 10 years at Christmas

AI outperformed humans in a crypto trading tournament. What were the results

Miner "capitulation" called a bullish factor for Bitcoin. Why

Пов'язані питання

QWhat was the total amount of cryptocurrency lost by Trust Wallet due to the hack?

AUsers lost $7 million in cryptocurrency due to the hack.

QWhich specific version of the Trust Wallet application was compromised in the security breach?

AThe security breach affected the browser application version 2.68.

QWhat was the impact on Trust Wallet's native token (TWT) price following the incident?

AThe native token TWT initially dropped by approximately 7% but recovered to its previous levels after the official announcement, trading slightly below $0.83.

QAccording to the article, how did the alleged malware in version 2.68 potentially steal user funds?

AThe hidden malicious code allegedly intercepted a user's secret recovery phrase during wallet import and sent it to an external server, giving attackers full access to the wallets and funds.

QWho did the crypto community and Binance's Changpeng Zhao suggest might be responsible for the hack?

AThe crypto community and Changpeng Zhao suggested that the hack was likely carried out by an insider within the Trust Wallet team.

Пов'язані матеріали

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

Pump.fun, a popular meme coin launchpad, has introduced a new standard mechanism called BOOST. It aims to address a significant capital efficiency issue: when a newly launched token graduates from its initial bonding curve to a liquidity pool (LP), roughly 20% of its liquidity becomes permanently locked as "dead liquidity," estimated to waste over $100 million annually. Instead of locking these funds permanently, BOOST repurposes them. Upon a token's migration, approximately 20% of the settlement funds (e.g., 17.6 SOL or ~$2516 USDC) are used to buy back the token on the open market over a 5-minute period via a Time-Weighted Average Price (TWAP) mechanism. All purchased tokens are immediately burned. This creates a brief, systematic buy pressure immediately after migration, potentially generating a short-term price surge ("pump") while permanently reducing the token's circulating supply. The goal is to enhance the immediate post-launch trading experience, potentially increasing trader retention and sustainable protocol revenue, which funds ongoing token buybacks. However, concerns exist that this artificial 5-minute boost could lower the barrier for launching low-quality tokens and lead to steeper price crashes once the buy pressure stops, if followed by large sell-offs. The feature automatically applies to tokens migrating after July 21, 2024, but not to previously migrated tokens or those launched via the Mayhem AI Agent lab.

marsbit7 хв тому

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

marsbit7 хв тому

Selling Block Space is Dead: Public Chains Must Find a New Way

"Blockchain infrastructure as a neutral, generalized platform is no longer a viable business model. This article argues that simply selling block space has failed, evidenced by the fact that only one public blockchain, Hyperliquid, was among 14 crypto firms surpassing $200M in annual revenue recently. Hyperliquid's revenue vastly outpaces others like Arbitrum, highlighting a crisis. The future lies in public chains pivoting away from neutrality to become product studios, application distributors, payment rails, or vertical SaaS providers, directly serving paying customers. The piece also covers key industry events: a major exploit on Ostium, attributed to vulnerabilities in its off-chain price oracle, underscores the critical security needs for protocols bridging off-chain markets. Additionally, it discusses the necessity of abstracting complex financial instruments like options. Experts argue that to achieve mass adoption, options should be packaged as user-friendly products—such as yield vaults, binary options, or structured products—rather than marketed with their technical complexity. Finally, the radar section notes developments including Yearn's fixed-rate lending product Flex, community backlash over Base's strategy changes, the launch of a DXY perpetuals DEX called Plether, and Starknet's focus on institutional-grade privacy and quantum resistance."

marsbit27 хв тому

Selling Block Space is Dead: Public Chains Must Find a New Way

marsbit27 хв тому

Podcast Notes | Conversation with GSR Asset Management Head: To Determine if This Crypto Rally is Real, Just Watch the Lending Rates on Aave

Podcast Summary: Dialogue with GSR's Head of Asset Management: To Determine if This Crypto Rally is Real, Just Check Lending Rates on Aave Andy Baehr, Managing Director of Asset Management at GSR, discusses the current crypto market, characterizing it as stuck in a state of "ambivalence" with short-lived, unsustainable rallies. He outlines a simple framework: the market moves between "ambivalence" and "conviction" (sustained upward momentum). Currently, every rally resembles a single-stage rocket booster that quickly fizzles out. Baehr identifies three key signals to watch: 1) DeFi lending rates, 2) the potential passage of the CLARITY Act, and 3) the market forming a consensus on the "Fed hawkish peak." He emphasizes that the most immediate indicator for the sustainability of the recent CPI-triggered rally is the USDC borrowing rate on Aave, currently around 3.75%—close to U.S. Treasury yields. The absence of a credit spread indicates low leverage demand and a lack of market energy. He explains that a healthy, sustained rally requires layered buying pressure. Last year's rally progressed from an ETH short squeeze to crypto-native trader influx and finally to ETF inflows. Currently, this structure is missing. Other potential structural buyers like Digital Asset Treasury (DAT) companies are absent, and ETF flows have proven transient. Baehr notes that while small-cap crypto tokens outperformed large caps in Q2—a potential sign of capitation in major assets—capital is also flowing to more exciting opportunities like AI stocks and tech IPOs, leaving crypto sidelined. Regarding DeFi, he highlights that platforms like Aave provide a clear, real-time signal of leverage demand through their supply/demand-driven interest rates. A significant, sustained rate increase would signal genuine market conviction. He also observes the quiet emergence of fixed-income-like products and vaults in DeFi. On regulation, the probability of the CLARITY Act passing before the August 7th deadline has dropped linearly from 75% to below 40% on Polymarket. Baehr suggests its passage would be treated as a bullish surprise, a potent driver for price movement. However, political hurdles, including ethical clause debates and disclosures about the First Family's crypto profits, remain significant obstacles. Ultimately, the market awaits clarity on the Fed's terminal rate under Chair Warsh. Until the "Fed Solstice"—the point where the market collectively understands the peak of hawkish policy—sustained conviction will be difficult to achieve.

marsbit38 хв тому

Podcast Notes | Conversation with GSR Asset Management Head: To Determine if This Crypto Rally is Real, Just Watch the Lending Rates on Aave

marsbit38 хв тому

Send a Message to Transfer Coins? Telegram to 'Stuff' a Crypto Wallet into 1 Billion Users This Summer

Telegram founder Pavel Durov has announced that a native, non-custodial wallet called Gram wallet will be built into every Telegram app this summer. This move aims to provide instant, fee-free cryptocurrency transfers for the platform's over 1 billion monthly active users. Durov described it as the largest deployment of a non-custodial crypto wallet in history. The new wallet, developed by Telegram itself, differs fundamentally from the existing third-party @wallet bot. It will be non-custodial from the start, meaning users will control their private keys. Following the announcement, the GRAM token (formerly Toncoin) saw a price increase of approximately 8%. This initiative is part of Telegram's renewed control over the TON blockchain and its "Make TON Great Again" roadmap, marking a return to the project after a 2018 SEC lawsuit. The launch comes as other super-apps like X Money and Meta are also expanding into digital payments, with Telegram opting for a crypto-native approach. However, key details remain unclear, including the exact launch date beyond "this summer," how the promised zero fees will be implemented technically, and how asset support and private key management will work for mainstream users.

marsbit1 год тому

Send a Message to Transfer Coins? Telegram to 'Stuff' a Crypto Wallet into 1 Billion Users This Summer

marsbit1 год тому

Hyperliquid’s HIP-4 proposal fuels HYPE staking as long-term conviction grows

Hyperliquid has proposed the HIP-4 upgrade to expand from perpetual futures into a broader, permissionless infrastructure layer for on-chain applications, requiring deployers to stake 500,000 HYPE to launch new markets. This shift aims to enable developers to build on its platform, a strategy backed by growing long-term investor conviction. Evidence includes a major trader staking millions in HYPE instead of taking profits, with total staked tokens reaching 43.9% of the supply, reducing available tokens and strengthening network security. Market metrics like high open interest and balanced funding rates suggest measured, non-speculative trader positioning. Sustained growth in protocol revenue, TVL, and governance participation further supports the positive outlook, contingent on continued user adoption and successful upgrade execution.

ambcrypto1 год тому

Hyperliquid’s HIP-4 proposal fuels HYPE staking as long-term conviction grows

ambcrypto1 год тому

Торгівля

Спот
活动图片