Trust Wallet Chrome Extension Flaw Drains $6M from v2.68 — Update to v2.69 Now
A critical vulnerability in the Trust Wallet Chrome browser extension version 2.68 was exploited, resulting in roughly $6 million in unauthorized withdrawals, according to blockchain investigator ZachXBT. Trust Wallet has confirmed the exploit affected only the 2.68 browser extension; mobile apps and other extension versions were not impacted. The team advised users running v2.68 to disable the extension immediately and update to v2.69, monitor and document transactions, and follow official channels for guidance while it investigates the technical root cause. Recommended precautions for traders include upgrading the extension, shifting large holdings to hardware wallets, never exposing private keys or recovery phrases, and closely monitoring wallets for suspicious activity. The incident highlights persistent wallet-extension security risks in DeFi and reinforces the need for timely software updates and stronger custody practices. Primary keywords: Trust Wallet, wallet extension exploit, browser extension vulnerability. Secondary/semantic keywords: crypto security, DeFi custody, hardware wallet, software update.
Bearish
The exploit targets a wallet product rather than a specific blockchain token, but it directly undermines user confidence in Trust Wallet’s browser extension and broader custodial practices. Short-term impact: heightened sell pressure and risk-off sentiment among traders holding assets accessed via the compromised extension; affected users may move funds to safer custody (hardware wallets or alternative wallets), temporarily reducing on-chain liquidity and trading volumes. Market reaction for any tokens predominantly held by impacted users could be negative until the scope and losses are fully disclosed. Long-term impact: limited to the product’s reputation rather than fundamental tokenomics — once fixes (v2.69) and transparent remediation are in place, confidence should gradually recover. However, repeated or large-scale wallet breaches can cause sustained caution, lowering demand for convenience-focused custody solutions and increasing preference for hardware or multi-sig custody, which could modestly reduce activity in DeFi front-ends tied to vulnerable extensions.