Trust Wallet Browser Extension Security Breach: $7M in Losses, Users to Be Compensated

Source: Cryptonews Original Title: Trust Wallet extension exploit a possible insider job, victims to be compensated Original Link: https://crypto.news/trust-wallet-extension-exploit-a-possible-insider-job-victims-to-be-compensated/ Several users of a major wallet service have been affected by a critical security issue involving version 2.68 of its Chrome extension. The company has confirmed that affected users will be compensated.

Security Incident Overview

• A security incident was confirmed tied to version 2.68 of the Chrome extension
• On-chain investigator ZachXBT flagged the issue after multiple users reported unauthorized outflows
• The company announced it will reimburse affected users as the team investigates

The wallet service acknowledged that the security incident affecting version 2.68 of its browser extension led to user funds being drained without any transaction approvals.

On-chain sleuth ZachXBT was the first to warn about the issue on Telegram, where several users were already reporting unauthorized outflows. At the time, the investigator was not yet able to identify the exact nature of the exploit but speculated that it may have been linked to the recent update of the extension.

Based on a list of affected wallet addresses, ZachXBT estimates total losses to be upwards of $6 million from hundreds of users.

Separately, a wallet associated with the exploiters shows that the attackers used several receiving addresses and immediately started moving funds in small amounts across multiple wallets. As of press time, the wallet still held over $2.7 million worth of various cryptocurrencies.

Immediate Actions Required

The service has urged users to immediately upgrade to version 2.69.

“Do NOT open the Browser Extension on your desktop device to ensure the security of your wallet and prevent further issues,” the company stated.

To safely upgrade, users must navigate using the address line “chrome://extensions/?id=egjidjbpglichdcondbcbdnbeeppgdph,” then switch the toggle to Off, click on Developer mode in the upper right corner, and press the Update button.

Once the process is complete, the extension should be re-enabled, and users are advised to verify that the version number reads 2.69 before proceeding.

Compensation Confirmed

While the service has not yet published a detailed post-mortem of the breach, users have criticized the lack of transparency regarding compensation procedures. However, this concern was addressed when leadership confirmed that all affected users will be reimbursed.

“So far, $7m affected by this hack. The wallet service will cover,” according to recent statements. The team is continuing to investigate how hackers were able to submit a new version.

Insider Theory Gains Traction

In community discussions, many users have speculated that the nature of the incident suggests an insider may have been involved. The ability to successfully submit a malicious extension version has raised questions about the security protocols governing extension updates.

It is not uncommon for exploiters to infiltrate high-profile crypto firms and gain privileged access. North Korean hackers have increasingly targeted the sector by posing as blockchain developers and IT workers.