Trust Wallet to fully compensate hacking losses… CZ "Assets are safe"

Changpeng Zhao (CZ), the founder of Binance, owns the crypto wallet service 'Trust Wallet', which said it will fully compensate the approximately $7 million in losses from a hack that occurred on the 25th.

On the 26th (local time), Trust Wallet and security firm SlowMist said the hack was identified as a 'supply chain attack' targeting version 2.68 of Trust Wallet's Google Chrome browser extension.

The hacker exploited the open-source analytics library 'posthog-js', disguising it as legitimate analytics logic, and distributed an update containing malicious code. When a user who installed that version (2.68) accessed their wallet, the seed phrase was intercepted in the background and sent to the hacker's server.

As a result, about $3 million worth of Bitcoin (BTC), $3 million worth of Ethereum (ETH), and multiple Solana (SOL) and EVM-compatible tokens were stolen. Total damages are estimated at about $7 million.

As the damage escalated, CZ said on his X that "users' assets are safe" and that "Trust Wallet will fully cover all losses from this hack." He added that "we are finalizing procedures so that all affected users can be fully compensated."

Meanwhile, Trust Wallet immediately released version 2.69 that removed the malicious code and strongly urged desktop extension users to update immediately. It also coordinated with major exchanges such as Bitget, KuCoin, and ChangeNOW to freeze the stolen funds so the hackers cannot cash out.