A significant security breach has rocked Trust Wallet, a popular self-custody cryptocurrency solution, leading to the theft of approximately $7 million from hundreds of user accounts. The incident, attributed to a vulnerability in a specific version of its Chrome browser extension, has intensified market anxieties already strained by recent price volatility and investor caution.
Trust Wallet Promises Full Reimbursement Amid Exploit Fallout
The breach originated from an exploit targeting Trust Wallet's Chrome browser extension version 2.68. Following the discovery, Trust Wallet promptly issued a public statement urging users of the compromised extension to disable it and upgrade to version 2.69. On-chain investigations, notably by Lookonchain, reveal that roughly $5.5 million of the stolen funds have already been moved and laundered through various instant swap services and centralized exchanges, including ChangeNOW, FixedFloat, KuCoin, and HTX. This pattern of routing funds through multiple channels is a common tactic to obscure the money trail and accelerate laundering processes. In response to the crisis, Binance founder and former CEO Changpeng Zhao (CZ) publicly assured users that Trust Wallet is committed to fully covering all losses incurred due to the exploit. This pledge was reinforced by a formal statement from the Trust Wallet team, confirming the $7 million impact and outlining ongoing efforts to finalize the refund process. The company emphasized that supporting affected users is its top priority and advised caution against unofficial communications.
Altcoin Market Wobbles Under Renewed Pressure
The timing of this security lapse could hardly be worse for the broader cryptocurrency market, which is already experiencing fragile sentiment. The total altcoin market capitalization (excluding Bitcoin and Ethereum) has seen a sharp decline from its earlier highs of $1.1–$1.2 trillion and is now struggling near the $825 billion support level. This downturn reflects a significant loss of momentum after a period of aggressive expansion, indicating heightened stress across the altcoin sector. Technically, the market has fallen below its faster weekly moving average, a level that previously offered dynamic support but has now flipped into resistance. Prices are currently hovering just above longer-term moving averages, forming a critical structural support zone between $780 billion and $820 billion. A sustained breach below this threshold could signal a more widespread bearish shift for altcoins, making the restoration of trust and a reclaim of the $900 billion level essential for any potential bullish resurgence.
