Amid already fragile sentiment across the crypto market, an attack on Trust Wallet has shaken confidence in self-custody solutions. The breach has impacted hundreds of users, with on-chain data showing over $6.77 million has been stolen. The timing has amplified concern, as investors are already navigating heightened uncertainty, declining prices, and rising risk aversion.
According to the Trust Wallet team, the exploit appears to be linked to a recent update to its Chrome browser extension. In a public statement, the company urged users to take immediate action: “Users with Browser Extension 2.68 should disable and upgrade to 2.69.” The message suggests the vulnerability was isolated to a specific version of the extension, but the scale of the losses has nonetheless raised alarm.
Trust Wallet is one of the most widely used self-custody wallets, reporting a global user base of roughly 220 million people. That reach makes any security incident significant, not only for the direct financial impact, but also for the broader implications for trust in non-custodial platforms.
On-chain investigators have begun tracing the stolen funds. Analysis shows the attacker has already moved approximately $5.5 million through instant swap services and exchanges like ChangeNOW, FixedFloat, KuCoin, and HTX. Routing funds through multiple channels is a common pattern to obscure and launder money.
Despite this, Trust Wallet has moved to reassure users. Binance founder Changpeng Zhao (CZ) stated that Trust Wallet will fully cover all user losses. The team later confirmed this, saying, “We’ve confirmed that approximately $7M has been impacted and we will ensure all affected users are refunded.” Supporting affected users is the top priority, and they are finalizing the refund process. Users are warned to avoid interacting with messages from unofficial channels.
Meanwhile, the broader altcoin market is showing signs of stress. The total cryptocurrency market capitalization excluding Bitcoin and Ethereum is trading near $825 billion, down sharply from the $1.1–$1.2 trillion highs earlier this year. This index has slipped below its key weekly moving average, which has now become resistance. Price is currently hovering just above a critical long-term support zone between $780 billion and $820 billion. A sustained break below this level would signal further weakness.The altcoin market appears to be shifting toward a broader bearish trend. For this trend to reverse, altcoins would need to reclaim the $900 billion market cap level and move back above their key moving averages.
From a market structure standpoint, holding the current range could still lead to a period of consolidation. However, if this support level fails, a deeper pullback toward the $650–$700 billion range becomes likely.
Frequently Asked Questions
Of course Here is a list of FAQs about the Trust Wallet breach designed to answer questions from concerned beginners to more advanced users
Beginner General User Questions
1 What happened with Trust Wallet
A security vulnerability in the wallets browser extension was exploited leading to the theft of approximately 7 million in cryptocurrency from hundreds of users
2 Was my mobile app hacked
No The confirmed breach was specifically in the Trust Wallet Browser Extension The mobile app was not directly compromised by this incident
3 How were peoples funds stolen
The hackers found a weakness in the extensions code that allowed them to generate fraudulent transaction popups When users approved what looked like a normal transaction they were actually signing away access to their assets
4 I use Trust Wallet Is my money safe now
If you only use the mobile app your wallet was not affected by this specific breach If you used the browser extension you should immediately take action Always ensure you have your secret recovery phrase secure and never share it
5 Is Trust Wallet safe to use anymore
The company has patched the reported vulnerability However this incident highlights that no software is 100 immune to risk Its crucial to practice good security habits like using hardware wallets for large sums and verifying all transaction details
6 Will the stolen funds be returned
Typically stolen crypto is extremely difficult to recover due to its decentralized and irreversible nature Trust Wallet has not announced a reimbursement plan for affected users Some may be eligible for a bounty if they reported the bug earlier
Advanced Technical Questions
7 What was the exact nature of the vulnerability
It was a logic flaw in the extensions transaction simulation and display code Attackers could craft malicious transaction data that appeared legitimate in the popup preview tricking users into signing transactions that drained their wallets
8 I used the browser extension What should I do immediately
Create a New Wallet Do not just remove the extension Use your app to create a brand new wallet with a new 12word recovery phrase