Trust Wallet Warns 36,000 Users After Browser Extension v2.68 Compromise — $7M Estimated Loss
Trust Wallet confirmed a security incident affecting its browser extension v2.68 between December 24–26, 2025. The company estimates roughly $7 million in losses and reports about 36,000 compromised wallets (≈0.016% of users). Trust Wallet says mobile apps and other extension versions were not affected. Affected users were notified via an in-extension security banner and, where applicable, mobile app notices. The firm identified ~2,596 addresses potentially linked to the incident and has received about 5,000 refund claims, many duplicates or suspicious; verification is ongoing. Users are instructed to immediately disable the old extension, update to v2.69 or later, create new wallets, secure recovery phrases, and transfer assets from compromised addresses. Impact appears rooted in malicious interactions or unauthorized access within the browser-extension environment — underscoring higher exposure to phishing, malicious scripts, and compromised extensions for browser-based wallets. Trust Wallet is cross-referencing data sources, prioritizing verified claimants for refunds, and plans a full technical breakdown once the investigation is complete. Traders should be aware of potential short-term selling pressure on assets held in affected wallets, elevated on-chain activity from asset movements, and increased user caution toward browser extensions.
Bearish
This incident is likely to have a bearish short-term effect on assets held in the compromised addresses and could weigh on user confidence in browser-based wallets. Estimated direct losses (~$7M) and roughly 36,000 compromised wallets increase the likelihood of immediate on-chain selling as users move or liquidate assets, producing downward price pressure for small-cap tokens concentrated in those addresses. Market makers and arbitrageurs may temporarily widen spreads and liquidity could tighten for affected tokens. In the medium term, the impact is likely to be neutral to modest: Trust Wallet’s quick identification, targeted notifications, an update (v2.69) and an outlined refund/verification process help limit systemic contagion. Long-term effects depend on the technical post-mortem and whether vulnerabilities are found in core wallet code — if the breach remains isolated to the extension version, confidence should gradually recover; if broader systemic flaws are revealed, longer-lasting negative sentiment and migration away from browser extensions could occur.