Binance to Reimburse Trust Wallet Users After $6–7M Browser Extension Hack

Published: 2025-12-26 06:18:48 |

Trust Wallet’s browser extension (v2.68) was compromised after a malicious update was published to the Chrome Web Store, allowing attackers to drain users’ crypto. Security firm PeckShield revised estimated losses from $2.8M to roughly $6–7M. The exploit affected BTC, Ethereum-compatible chains and Solana; about $2.8M remains in attacker-controlled addresses while most stolen funds were moved toward centralized exchanges (notably ChangeNOW, KuCoin and FixedFloat). Trust Wallet issued a patched extension (v2.69) and warned desktop users not to open the extension to avoid triggering the exploit. Binance CEO Changpeng Zhao (CZ) said funds are "SAFU" and Binance will use its treasury to reimburse victims. Investigations are focusing on how a malicious extension update passed publishing controls — a likely release-pipeline or insider compromise. Trader actions: update or remove the Trust Wallet browser extension immediately; avoid interacting with suspected attacker addresses; monitor inflows to centralized exchanges for potential cash-outs. Binance’s reimbursement plan may reduce immediate sell pressure, but ongoing forensic/legal actions and funds routing to exchanges create short-term volatility risk. Keywords: Trust Wallet, browser extension hack, Binance, wallet security, reimbursement.

Bearish

This breach directly undermines confidence in a widely used wallet extension, raising immediate security concerns for users and increasing the probability of sell-side pressure. Short-term: stolen funds being moved to centralized exchanges creates heightened risk of rapid cash-outs, which can cause downward price pressure on affected assets (BTC, ETH and SOL exposure noted). Even though Binance pledged reimbursement — which may dampen forced selling from compensated victims — reimbursements take time and do not prevent attackers from cashing out first. Mid-to-long-term: impact is likely muted if Trust Wallet’s patching and exchange/forensic actions restore confidence and if no broader systemic vulnerability is found. Overall, expect short-term bearish effects driven by sell pressure and risk aversion among wallet users and traders.