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Changpeng Zhao confirmed a Trust Wallet browser extension vulnerability that caused about $7 million in user losses, triggering full reimbursements through SAFU. The incident disrupted users, raising scrutiny over extension vetting and prompting an urgent security response across the ecosystem.
Zhao shared the update on X, confirming that the affected users will receive reimbursement via SAFU. Trust Wallet released version 2.69 to stop further thefts. Investigators are now examining how the malicious version bypassed checks.
This episode drew a swift reaction across crypto security circles, renewing focus on the risks associated with software distribution pipelines. It also raises one critical question: Could stronger controls in non-custodial wallet extensions prevent similar losses?
Trust Wallet reported that a hack of a browser extension led to the loss of $7 million in user assets. Its developers deployed the 2.69 update, which included the fix, while official statements noted that the thefts had been halted following the release.
Blockchain detective ZachXBT was the first to notice the problem and informed the community. Just after that, consumers started complaining about delays in getting their money back. Changpeng Zhao assured affected users would receive compensation through SAFU and also stated that there would be an internal investigation to find out how the controls were bypassed.
The breach sent Trust Wallet leadership under scrutiny, given its link to Binance. Users questioned the extension vetting process after a malicious version reached the distribution channel.
Community reactions split across concern and support. Some users criticized the controls around browser extensions, while others pointed out the reimbursement pledge was a means of mitigating damage.
This event also sharpened attention on non-custodial tools that rely on centralized distribution channels. Security teams will now reassess how trusted infrastructure can introduce risk.
Beyond the breach, markets tracked Bitcoin, which struggled through December with familiar seasonal dips. Historical patterns show rebounds after difficult December and January periods, including recoveries in February during the past years.
Views on 2026 remain diverged; Peter Schiff warned about an economic collapse that could pressure Bitcoin. Zhao described a possible supercycle driven by adoption and technology, while threat data shows shifting attack vectors. According to Chainalysis, 88% of crypto losses in Q1 2025 stemmed from private key compromises tied to social engineering or insider access.
With evolving criminal activity, regulators need to accelerate their enforcement. The US Securities and Exchange Commission took a step forward by placing cybersecurity at the forefront of operations through its Cyber and Emerging Technologies Unit.
In Europe, the European Union, according to Kroll, was moving towards the adoption of unified legislation. At the same time, standards like ISO 27001 and PCI DSS became more popular, as indicated by Munich Re.
As total value locked grows, incentives for attackers keep rising. While DeFi losses fell in 2024–2025, centralized tools and extensions remain targets, driving demands for cyber insurance and stronger controls.
Also Read: North Korea Drives $2B Crypto Losses With Fewer Bigger Hacks
The Trust Wallet hack resulted in a $7-million loss over a compromised browser extension. While Changpeng Zhao confirmed full SAFU reimbursement and a rapid fix, the incident renewed focus on extension security, software distribution risks, and a need for stricter controls for non-custodial wallet infrastructure.
