Trust Wallet Chrome Extension Flaw Triggers Multi-Million Dollar Crypto Theft
Compromised Update Exposes Users to Credential Theft
Trust Wallet has disclosed a security incident involving its Google Chrome browser extension that resulted in the theft of approximately $7 million worth of cryptocurrency. The breach was traced to a compromised extension update that was briefly distributed to users before being identified and removed.
According to the company, the issue was limited to a specific version of the Chrome extension released in late December. During this period, attackers were able to inject malicious code into the extension, creating a hidden pathway for harvesting sensitive user information.
How the Attack Worked
Security analysis revealed that the malicious code was designed to capture wallet recovery phrases when users unlocked their Trust Wallet through the browser. Once collected, these recovery phrases were transmitted to servers controlled by the attackers, giving them full access to affected wallets.
With valid credentials in hand, the attackers were able to move funds without triggering traditional security alerts. The stolen assets reportedly included cryptocurrencies across several major blockchain networks, such as Bitcoin, Ethereum, and Solana.
Scope of the Impact
Blockchain tracking firms estimate that hundreds of wallets were affected before the breach was contained. The stolen funds were rapidly transferred through multiple wallets and cross-chain services, making recovery efforts more complex.
Trust Wallet emphasized that the incident did not impact its mobile applications or other wallet platforms, and that the vulnerability was isolated strictly to the affected Chrome extension version.
Company Response and Mitigation Measures
In response to the incident, Trust Wallet promptly removed the compromised extension version and released a patched update. Users were urged to update immediately or disable the extension if it had not yet been upgraded.
The company also stated that it is working with cybersecurity experts and blockchain investigators to analyze the attack and improve safeguards around its software distribution process. Trust Wallet has announced plans to compensate affected users, though details of the reimbursement process are still being finalized.
Broader Security Implications
The incident has reignited concerns about the security risks associated with browser-based crypto wallets, particularly those relying on automated update mechanisms. Security professionals warn that browser extensions remain a high-value target for attackers due to their access to sensitive data and frequent user interaction.
Experts recommend that users enable additional security measures, verify extension updates carefully, and consider hardware or mobile wallets for storing large crypto balances.
Source: Thehackernews Edited by Sonarx