Trust Wallet Christmas Heist! ZachXBT Warns of Collective Theft After Chrome Update

On December 25th, Christmas Day, multiple Trust Wallet users woke up to find their wallet funds transferred without authorization, with the amount lost unknown. Blockchain investigator ZachXBT urgently issued an alert in the Telegram group, pointing out that these thefts occurred after the Trust Wallet Chrome extension was updated on December 24th, making the timing highly suspicious.

Christmas Attack Timeline: A Perfect Storm Within 24 Hours

The event timeline shows meticulous planning by the attacker. On Christmas Eve, December 24th, Trust Wallet pushed an extension update to the Chrome Web Store, and most users automatically or manually updated during the holiday atmosphere. On the morning of December 25th, Eastern Time, around midnight to early morning, the first victims discovered abnormal fund transfers. After receiving multiple reports, ZachXBT issued a public warning on Telegram at noon local time, urging Trust Wallet users to immediately check their wallets.

The timing during the holiday is no coincidence. During Christmas, development team staffing is reduced, customer service response is delayed, and user vigilance is lowered, creating a golden window for attackers. Similar strategies were used in the 2022 Slope wallet attack, where attackers exploited weekend periods to steal funds from over 8,000 Solana wallets. Trust Wallet’s silence has further fueled panic, with users complaining on social media about the inability to contact official support for clear responses.

ZachXBT emphasized in the alert that “the exact root cause has not yet been determined,” but pointed the finger at the Chrome extension update. This detail is crucial because it shifts the investigation focus from user error to systemic vulnerabilities. If confirmed to be an issue with the extension itself, Trust Wallet faces significant legal and reputational risks. Currently, ZachXBT is collecting affected wallet addresses, attempting to trace the flow of stolen funds and identify attack patterns.

Chrome Extension: The Trojan Horse of Crypto Wallets

The high-privilege nature of browser extensions makes them ideal targets for attackers. Chrome extensions can read and modify all web content accessed by users, intercept network requests, inject arbitrary scripts, and even access local storage. For crypto wallet extensions, these permissions mean they can: capture user-entered seed phrases and private keys, modify transaction destination addresses and amounts, intercept signing requests and replace transaction data, and access encrypted sessions stored in the browser.

Security researchers have repeatedly warned that a malicious update or a compromised dependency could put millions of users at risk. In November 2023, a popular library called “Ledger Connect Kit” was compromised, affecting multiple DeFi frontends and resulting in losses exceeding $480,000. This attack demonstrated the power of supply chain attacks: attackers do not need to directly hack the wallet app, just control an upstream dependency.

Three Systemic Risks of Browser Wallets

Auto-update Mechanism: Extensions automatically update by default, forcing users to accept new versions without reviewing code changes

Permission Abuse: Legitimate extensions may add malicious code during updates, exploiting granted broad permissions to steal assets

Dependency Chain Vulnerabilities: If third-party libraries relied upon by wallets are compromised, all downstream applications are affected without user awareness

In recent months, multiple similar threats have emerged. Security firms report that some fake wallet extensions are designed specifically to steal seed phrases, allowing attackers to fully reconstruct wallets and later drain funds. More covert attacks involve malicious transaction “helper” extensions that quietly modify transaction instructions, stealing small amounts of cryptocurrency each time users approve exchanges, often going unnoticed due to the small amounts.

Victim Response and Asset Recovery Guide

For Trust Wallet users suspecting they have been affected, timing is critical. The primary task is to immediately review recent 48 hours of transaction history, paying close attention to any unauthorized token transfers, contract interactions, or approval signatures. If suspicious transactions are found, take the following actions immediately: disable the Trust Wallet Chrome extension by going to chrome://extensions and removing it; revoke all DeFi approvals using Revoke.cash or Etherscan’s Token Approvals feature; create a new wallet using a newly generated seed phrase instead of restoring from the old wallet; transfer remaining assets to the new wallet, but ensure not to use devices that may have been monitored.

ZachXBT recommends victims proactively contact law enforcement and provide detailed transaction records. Although crypto theft cases are rarely solved, establishing an official record is crucial for potential class-action lawsuits or insurance claims in the future. Users should also report their victim status in ZachXBT’s Telegram group or relevant community forums, providing details such as stolen amounts and wallet addresses to help investigators build a comprehensive attack map.

For unaffected Trust Wallet users, preventive measures include: suspending use of Chrome extensions and switching to mobile apps or hardware wallets; reviewing and revoking unnecessary DeFi contract approvals; avoiding signing new transactions or approvals until the situation is clarified; regularly backing up seed phrases and storing them offline; considering transferring large assets to hardware wallets like Ledger or Trezor.

Lack of Official Response from Trust Wallet Sparks Trust Crisis

As of press time, Trust Wallet has not issued an official statement confirming whether the Chrome extension update was the direct cause, nor provided technical details or compensation plans. This silence has triggered strong dissatisfaction within the crypto community. Users on X and Reddit complain about being unable to contact customer support, and official accounts ignore the incident, even continuing to post holiday greetings, starkly contrasting with victims’ anxiety.

Trust Wallet is a crypto wallet owned by Binance, claiming to have tens of millions of users. If such a large-scale security incident is confirmed, it could deal a devastating blow to its market position. In the past, the Slope wallet experienced a private key leak in 2022, causing user numbers to plummet over 70%, and has not recovered since. If Trust Wallet cannot quickly and transparently handle this crisis, it may face a similar fate.