Trust Wallet Grapples with Fraudulent Claims Following $7 Million Chrome Extension Breach
Trust Wallet CEO Eowyn Chen disclosed a stark discrepancy between confirmed hack victims and reimbursement claims after a December 24 security breach. While only 2,596 wallets were compromised, nearly 5,000 claims flooded in—prompting rigorous verification protocols to weed out fraudulent requests. The attack exploited a leaked Chrome Web Store API key, enabling hackers to distribute a malicious extension update that harvested seed phrases through a tampered analytics library.
The operational shift from rapid response to meticulous validation underscores the challenges of balancing victim support with fraud prevention in decentralized ecosystems. SlowMist's forensic analysis revealed the attackers' sophistication, embedding stealers within seemingly benign code to bypass detection.
