Binance founder Changpeng Zhao has stepped in to calm nerves after a startling security breach. He confirmed that Trust Wallet will fully reimburse users for the $7 million loss.
The hack occurred over the holidays and targeted a specific browser extension version. Zhao’s swift assurance aims to restore confidence during a record breaking year for crypto thefts.
CZ Promises User Funds Are Safe
Panic spread quickly when news broke about drained wallets on December 25. Changpeng Zhao, widely known as CZ, addressed the situation immediately on social media. He stated clearly that the company would cover the $7 million loss.
“User funds are SAFU,” CZ declared.
He explained that the team is currently investigating how intruders pushed a compromised version of the software. His proactive stance brings relief to thousands of worried investors.
Trust Wallet is taking full responsibility for the security lapse. This move distinguishes them from other platforms that have struggled to compensate victims in the past. It sends a strong message about their commitment to user safety.
trust wallet browser extension security update interface on laptop
Key Statement from CZ:
“So far, $7m affected by this hack. Trust Wallet will cover. Appreciate your understanding for any inconveniences caused.”
The community reaction has been largely positive following the announcement. Investors appreciate the transparency and the financial guarantee provided by the leadership team. It turns a potential PR disaster into a demonstration of financial stability.
Browser Extension Version 2.68 Vulnerability
The security team at Trust Wallet identified the root cause shortly after the attack began. The breach was strictly isolated to the Browser Extension version 2.68.
Hackers managed to infiltrate this specific update. They introduced a vulnerability that allowed them to siphon funds from connected wallets. The team acted fast to plug the hole.
If you use the mobile app, you are safe.
The developers confirmed that mobile-only users face no risk from this specific incident. The compromise did not touch the iOS or Android applications. This isolation limited the total damage significantly.
The company has released an urgent fix to close the backdoor.
Action Required:
- Check Version: Verify if you are using the browser extension.
- Update Immediately: Ensure you upgrade to version 2.69 or higher.
- Verify Balances: Check your transaction history for any unauthorized movements.
Users must act now to ensure their digital assets remain secure. Leaving the old version installed leaves the door open for potential theft.
A Record Year for Crypto Heists
This incident adds to a troubling trend observed throughout 2025. Cybercriminals have become more aggressive and sophisticated in their attacks on digital asset platforms.
A recent report from Chainalysis paints a grim picture of the industry. The total value of stolen crypto assets surged to $3.14 billion this year alone. This massive figure highlights the growing pains of the Web3 ecosystem.
Major Security Breaches in 2025
| Platform | Estimated Loss | Primary Cause |
|---|---|---|
| Bybit | $1.5 Billion | External Breach |
| Trust Wallet | $7 Million | Malicious Extension |
| Upbit | $1.77 Million | Security Exploit |
The Bybit hack remains the largest single event of the year. It accounted for nearly 44% of all stolen funds in 2025. That incident shook the market and forced exchanges to tighten their protocols.
North Korean hacking groups continue to be a major threat. Reports link them to nearly $2 billion of the total losses recorded this year. Their involvement suggests that state sponsored actors are targeting the crypto sector.
Industry Leaders Call for Vigilance
Experts warn that security is a constant battle rather than a one time fix. OKX founder Star Xu weighed in on the Trust Wallet situation recently.
He noted that this event serves as a wake up call for everyone.
“Security is never ‘done’,” Xu remarked.
His comments remind developers that hackers are always looking for new weaknesses. Even top tier platforms must remain on high alert 24/7. Complacency is the biggest enemy in the world of digital finance.
Users also play a critical role in their own security. Relying solely on platform defenses is no longer enough.
Best Practices for 2026:
- Use hardware wallets for long term storage.
- Enable 2-Factor Authentication (2FA) on all accounts.
- Never click on suspicious links or download unverified extensions.
The industry is learning hard lessons this year. Each hack exposes a new vulnerability that companies must address. However, the quick response from Trust Wallet sets a positive standard for crisis management.
Users can breathe easier knowing their losses will be covered. Yet, the event remains a stark reminder of the risks involved in the crypto space.
In summary, the $7 million theft was a shock, but CZ’s promise to refund users has saved the day. The issue was limited to a specific browser extension which has now been fixed. As hacks become more common, staying updated and vigilant is your best defense.
