Binance Affiliate Trust Wallet Hacked, but CZ Assures $7M Loss Compensation

Trust Wallet, a crypto wallet owned by Binance founder Changpeng Zhao, has been compromised, resulting in the confirmed theft of at least $7 million in cryptocurrencies. Zhao, better known as CZ, confirmed that the wallet platform will cover the losses of all affected users.

According to crypto investigator ZachXBT, hundreds of Trust Wallet users suffered losses due to the vulnerability.

Another Security Lapse in Crypto Wallets

The security breach occurred due to a vulnerability in a version of the Trust Wallet Google Chrome browser extension. The developers urged users to disable the affected version and upgrade to the latest one.

“User funds are SAFU,” Zhao wrote in a post on X. “The team is still investigating how hackers were able to submit a new version.”

Trust Wallet also confirmed that mobile-only users and users of other browser extensions were not affected.

A Binance-Backed Crypto Wallet

The self-custodial crypto wallet platform has over 220 million accounts, although the actual user count may be lower, as users can create multiple accounts. Zhao acquired the wallet in 2018 through Binance, where he is a majority stakeholder, but did not disclose the purchase price.

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Recently, Trust Wallet entered the prediction market trend and began offering access to event-based contracts. Earlier, MetaMask, another popular crypto wallet, announced plans to integrate Polymarket’s prediction markets through an exclusive partnership.

Ethereum co-founder Vitalik Buterin recently pushed back against growing criticism of prediction markets, arguing that their risks are overstated and often similar to those already present in traditional financial markets. He also described participation in prediction markets as “healthier” than in traditional markets, largely because their structure limits certain forms of speculative excess.

Meanwhile, the Trust Wallet hack is not the only incident in the crypto industry during the holiday period. On Christmas Day (Thursday), Bitcoin prices on Binance, particularly for the BTC-USD1 pair, briefly dropped to $24,000 before rebounding to around $87,000. The flash crash occurred in the illiquid USD1 market, a stablecoin linked to World Liberty Financial, which is backed by the family of US President Donald Trump.