Trust Wallet Browser Extension Security Incident

A security incident involving the Browser Extension has resulted in approximately $7 million in losses, drawing renewed attention to the risks associated with browser-based crypto wallets. Trust Wallet confirmed that the issue affected only Browser Extension version 2.68, urging users to disable the extension immediately & upgrade to version 2.69, which the company has stated is secure. Mobile-only users & all other extension versions were not impacted.

While the incident was contained to a single version, its implications stretch far beyond Trust Wallet itself, touching on broader questions around wallet distribution, update security & user protection in the crypto ecosystem.

• What Happened
• How the Attack Surface Emerged
• Response, Compensation & User Impact
• Why This Matters for Crypto Wallet Security

What Happened

According to Trust Wallet’s disclosure, a compromised version of its browser extension was distributed, exposing users who interacted with version 2.68 during the affected period. Although full technical details have not yet been released, the nature of the response suggests that attackers were able to exploit wallet interaction flows rather than the underlying blockchain protocols.

Browser extensions, particularly crypto wallets, operate with elevated permissions. They sit directly between users & decentralized applications, handling transaction signing, address approvals & session data. A single malicious update can therefore redirect funds, manipulate approval prompts, or deceive users into authorizing unintended transfers.

Follow the step-by-step guide soonest possible:

Step 1: Do NOT open the Trust Wallet Browser Extension on your desktop device to ensure the security of your wallet and prevent further issues.

Step 2: Go to Chrome Extensions panel in your Chrome browser by copying following to…

— Trust Wallet (@TrustWallet) December 26, 2025

The issue came to public attention after blockchain investigator reported receiving a growing number of messages from affected users. This prompted calls for clarity on the scale of losses & whether compensation would be offered.

Trust Wallet acknowledged the situation & stated that its internal teams were investigating how the compromised version passed through the extension submission & review process.

How the Attack Surface Emerged

The incident highlights a structural vulnerability common across browser-based wallets, i.e., distribution dependency. Unlike mobile apps or hardware wallets, browser extensions rely heavily on third-party marketplaces such as the Chrome Web Store.

While these platforms implement automated reviews & policy checks, they are not designed for adversarial environments where attackers actively attempt to bypass safeguards. For crypto wallets, this creates a unique risk. Even short-lived exposure to a compromised version can result in irreversible losses, since blockchain transactions cannot be rolled back once confirmed.

In recent years, attackers have increasingly shifted focus away from protocol-level exploits toward software supply-chain attacks, targeting the tools users trust to manage their assets rather than the blockchains themselves. The Trust Wallet incident fits squarely into this trend.

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. https://t.co/xdPGwwDU8b

— CZ 🔶 BNB (@cz_binance) December 26, 2025

Response, Compensation & User Impact

Trust Wallet moved quickly to issue user guidance, instructing affected users not to open the extension, disable it manually & force an update to version 2.69. The company also stated that its customer support teams were already in contact with impacted users to coordinate next steps.

Public concern intensified after confirmation that millions of dollars were involved. Addressing these concerns, CZ stated that Trust Wallet would cover the losses, assuring users that funds were SAFU & that investigations were ongoing to determine how the compromised version was approved for distribution.

This commitment to compensation helped prevent wider panic, but it also raised important questions about responsibility, liability & expectations in the self-custody wallet space.

I currently have many concerned victims contacting me via DM so can your team please clarify if you will be offering any compensation for Trust Wallet Browser Extension users.

— ZachXBT (@zachxbt) December 25, 2025

Why This Matters for Crypto Wallet Security

As crypto adoption grows, the weakest link increasingly lies in user-facing software, i.e., browser extensions, plugins & integrations that operate in complex environments with multiple dependencies. For users, the episode is a reminder that convenience often comes at a cost.

Browser wallets offer speed & accessibility, but they also expand the attack surface compared to mobile-only or hardware-based solutions. For wallet providers, the incident reinforces the need for stricter update verification, stronger internal release controls & clearer communication during security events.

As the industry matures, expectations around incident response & user protection are rising rapidly. The Trust Wallet Browser Extension incident is unlikely to be the last of its kind.

As attackers refine their tactics, supply-chain vulnerabilities in widely used tools will remain a prime target. Trust Wallet’s swift response & compensation commitment helped limit damage, but the event serves as a cautionary tale for both users & builders.

If you find any issues in this blog or notice any missing information, please feel free to reach out at yash@etherworld.co for clarifications or updates.

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