Trust Wallet Hack: $7 Million Stolen, Binance Promises Full Reimbursement

December 25, 2025, will be remembered as one of the darkest days in crypto history. While millions celebrated Christmas, hundreds of cryptocurrency investors watched their Trust Wallet balances mysteriously drain to zero. The damage: approximately $7 million stolen through a critical vulnerability in the wallet's browser extension. But amid the chaos, a silver lining emerged: Changpeng Zhao, Binance's founder, immediately pledged to fully reimburse all victims.

The December 25 Attack: A Sophisticated Backdoor in Extension 2.68

The incident didn't affect the Trust Wallet mobile app, but exclusively targeted the browser extension for Chrome, Brave, and other compatible browsers. Hackers precisely targeted version 2.68 of this extension, injecting a particularly sophisticated malicious code.

How the Backdoor Worked

According to security analyses conducted by SlowMist and other cybersecurity experts, the malicious code was hidden in the 4482.js file within the extension. This backdoor enabled:

• Exfiltration of recovery phrases (seed phrases) from users
• Automatic triggering when importing or viewing secret phrases
• Data transfer to attacker-controlled servers
• Immediate fund drainage without any action from victims

The thefts affected multiple blockchains simultaneously: Bitcoin, Ethereum, Solana, and other networks, with some victims losing six-figure amounts within minutes.

Emergency Measures for Users

Trust Wallet immediately released a patch and issued the following instructions:

1. Immediately disable the Trust Wallet extension if you're using version 2.68
2. Update to version 2.69 (or later) via the official Chrome Web Store
3. Never reuse compromised recovery phrases
4. Transfer remaining funds to a new wallet with a new seed phrase
5. Prefer hardware wallets for significant amounts

Important: Users exclusively on mobile and those using other extension versions are not affected by this vulnerability.

CZ and the SAFU Promise: Full Reimbursement of $7 Million

Facing the scale of the disaster, Changpeng Zhao reacted with remarkable speed on X (formerly Twitter). His message, published on December 26, immediately reassured the community:

So far, $7m affected by this hack. @TrustWallet will cover. User funds are SAFU. Appreciate your understanding for any inconveniences caused. 🙏

The team is still investigating how hackers were able to submit a new version. https://t.co/xdPGwwDU8b

— CZ 🔶 BNB (@cz_binance) December 26, 2025

This statement references the famous SAFU fund (Secure Asset Fund for Users) created by Binance in 2018. While Trust Wallet has its own treasury, Binance's backing as the wallet's owner guarantees the financial strength of this commitment.

A Reassuring Precedent for the Industry

This full coverage sends a strong signal to the crypto market. While 2025 has already recorded approximately $3.4 billion in losses from hacks, Binance's reaction demonstrates that responsible governance can protect users even against the most sophisticated attacks.

The reimbursement process is currently being finalized. Victims must follow Trust Wallet's official channels to file their claims and avoid phishing attempts that will inevitably try to exploit the situation.

The Insider Job Hypothesis: Internal Betrayal?

The most disturbing aspect of this incident lies in the attack's circumstances. How did hackers manage to inject malicious code into an official update distributed via the Chrome Web Store?

SlowMist and ZachXBT's Findings

Yu Xian, founder of cybersecurity firm SlowMist, published a detailed analysis revealing a troubling timeline:

• December 8, 2025: Attack preparation begins
• December 22, 2025: Malicious code implanted in version 2.68
• December 24-25, 2025: Deployment of the compromised update
• December 25, 2025: Backdoor activation and massive fund drainage

This meticulous planning, combined with the ability to publish a malicious version on the official store, strongly suggests internal compromise. ZachXBT, a renowned blockchain detective, and Yu Xian both point toward a probable "insider job."

CZ himself confirmed that this hypothesis is "very credible" and that the investigation now focuses on identifying the person or persons responsible within the organization.

Implications for Crypto Wallet Security

This incident raises fundamental questions about the security of browser extensions for managing cryptocurrencies:

Browser Extension Vulnerabilities

Browser extensions present specific risks:

• Expanded attack surface compared to native mobile applications
• Dependence on validation processes of stores (Chrome, Firefox, etc.)
• Access to sensitive data within the browser environment
• Automatic updates that can rapidly propagate malicious code

Security Recommendations

For cryptocurrency holders, several lessons emerge:

1. Diversify storage solutions: Never concentrate all assets in a single solution
2. Prefer hardware wallets (Ledger, Trezor) for significant amounts
3. Systematically verify versions and official software sources
4. Maintain constant vigilance for unusual behaviors
5. Enable multi-factor authentication wherever possible

The Trust Challenge in the DeFi Ecosystem

This attack occurs as decentralized finance seeks to gain legitimacy with the mainstream public. Supply-chain attacks targeting trusted ecosystem tools represent an existential threat to mainstream adoption.

However, Binance's rapid response and financial coverage constitute a positive counter-example, demonstrating that established players can take responsibility toward their users.

What to Do If You're Affected?

If you used Trust Wallet extension 2.68 during the critical period:

1. Contact official support from Trust Wallet via their verified channels (beware of imposters)
2. Document your losses with screenshots and transaction histories
3. Create a new wallet with a new recovery phrase
4. Never share your seed phrase with anyone, even those claiming to be support staff
5. Follow official instructions for the reimbursement process

Choosing Secure Crypto Solutions

The Trust Wallet incident highlights the critical importance of selecting reliable and secure platforms for managing your digital assets. Whether you're storing cryptocurrencies, trading, or using DeFi services, the security of your chosen platform should be your top priority.

Looking for secure alternatives to manage your crypto assets? Our comprehensive guide compares the best crypto wallets, exchanges, and neobanking solutions with detailed security assessments, user reviews, and feature comparisons. Discover platforms that prioritize user protection and have proven track records: Explore Secure Crypto Wallets and Exchanges

Conclusion: Crisis Managed, Lessons Learned

The Trust Wallet hack of December 25, 2025, will remain in the annals as an example of supply chain vulnerability in the crypto world, but also as a demonstration of the industry's capacity to protect its users when major players assume their responsibilities.

With full reimbursement of the $7 million promised by CZ and Binance, victims can hope to recover their funds. But beyond the financial resolution, this incident reinforces a fundamental truth of the crypto sector: security remains challenge number one, and no system is infallible.

For investors, caution remains essential: diversify your storage solutions, prefer hardware wallets for significant sums, and stay vigilant regarding updates and unusual behaviors from your crypto tools.