Trust Wallet has recently suffered a major security incident that resulted in approximately $7 million in losses across multiple cryptocurrencies, underscoring that while self-custody can reduce certain risks, it never fully eliminates exposure to vulnerabilities or human error.
? UPDATE: Trust Wallet confirmed 2,596 affected wallets in the $7M hack and pledged to reimburse all losses, citing thousands of false or duplicate claims and the need for strict verification. pic.twitter.com/WsDWA1Wc0T
— Cointelegraph (@Cointelegraph) December 29, 2025
Major Hack Hits Trust Wallet
According to available information, the attack occurred within a short window around December 24–25, 2025, with roughly $7 million siphoned from users’ wallets across several major crypto assets. Crucially, early findings suggest that the core Trust Wallet mobile application was not the primary point of failure.
Instead, investigators are focusing on a specific attack vector linked to a user-facing component. In similar cases, attackers often target less-monitored surfaces rather than the main app itself. Browser extensions or specific software versions can offer temporary but highly lucrative entry points.
In this incident, a compromised browser extension version has reportedly been identified, significantly shifting the risk profile for end users. Even well-regarded wallets can be weakened by third-party dependencies, improperly signed updates, or highly targeted exploits.
User reports describe rapid wallet drains, in some cases affecting accounts that had been inactive for long periods. This detail is notable, as dormant wallets often have outdated security practices, making them easier targets.
Trust Wallet’s immediate response involved pushing a security patch and forcing users to migrate to a newer version, aiming to cut off the attack channel before the full scope of the exploit was understood.
For the broader crypto ecosystem, the incident reinforces a familiar paradox: as adoption grows, attacks become more professional and more targeted. Widely used consumer tools are attractive targets, as scale maximizes potential impact.
The operational takeaway is straightforward: verify software versions, limit browser extensions, and keep large balances isolated from high-exposure environments. Strong security hygiene often matters more than even credible marketing promises.
CZ Confirms Full Reimbursement for Affected Users
Changpeng Zhao (CZ) publicly confirmed that all affected users will be fully reimbursed, with Trust Wallet covering the losses. The statement aims to reassure users by emphasizing that protecting customers remains a top priority.
This stance is particularly significant because non-custodial wallets typically place responsibility on the user. By choosing to compensate losses, the company is adopting a service-oriented approach more commonly associated with centralized platforms.
From a trust perspective, the reimbursement helps limit panic and reduces the risk of contagion across other Web3 products. Markets tend to closely watch the speed of response and clarity of technical explanations following such incidents.
Next steps are expected to include an internal investigation and a detailed timeline explaining the origin and scope of the vulnerability. Clear, fact-based communication is critical to preventing speculation and misinformation.
For users, the practical lesson is to assume that browser environments are inherently more fragile than isolated setups. A single extension, an open session, or a malicious link can quickly turn a minor risk into a total loss.
Security best practices include immediate updates, revoking unnecessary connections, rotating wallets if exposure is suspected, and enabling strong authentication such as biometrics and robust passcodes. Removing unused permissions can significantly reduce the attack surface.
This incident does not invalidate self-custody but it reinforces its demands: discipline, security awareness, and fund segmentation. If $7 million can disappear in hours, prevention must become a daily routine.
