Trust Wallet Faces Surge in Fraudulent Compensation Claims

Trust Wallet verifies users after browser extension hack.

The Trust Wallet team has moved to the stage of verifying users affected by the recent hack of its browser extension. Project head Eowyn Chen reported an unexpectedly high number of compensation claims.

2/ We’re prioritising accuracy over speed to protect affected users, and we aim to share further work-in-progress details as soon as we can, likely tomorrow.

So far, we’ve identified 2,596 affected wallet addresses. From this group, we’ve received around 5,000 claims which…

— Eowync.eth (@EowynChen) December 28, 2025

The company identified 2,596 compromised addresses. However, the number of compensation requests has already approached 5,000, indicating a high percentage of duplicates or fraudulent attempts.

According to Chen, accurate verification of wallet ownership is crucial for returning funds to the rightful owners. Developers are cross-referencing data from multiple sources to weed out fraudsters. The company has prioritized verification accuracy over the speed of payouts.

The attack on the desktop version of Trust Wallet occurred on December 26. Hackers siphoned off assets worth $7 million. Former Binance head Changpeng Zhao assured that the project team would fully compensate the losses.

On-chain investigator ZachXBT suggested that the recent update of the Chrome wallet might be the cause. Platform representatives have yet to confirm this theory, continuing their internal investigation.

Arrest of a Coinbase Insider

While Trust Wallet examines hypotheses, Coinbase CEO Brian Armstrong reported the actual arrest of an insider. Indian police detained a former customer service agent of the exchange.

We have zero tolerance for bad behavior and will continue to work with law enforcement to bring bad actors to justice.

Thanks to the Hyderabad Police in India, an ex-Coinbase customer service agent was just arrested. Another one down and more still to come.

— Brian Armstrong (@brian_armstrong) December 26, 2025

In May, hackers bribed company staff to steal clients’ personal data and demanded a ransom of $20 million. Coinbase estimated potential costs of mitigating the attack’s consequences at $400 million.

Armstrong declared “zero tolerance” for staff misconduct and promised to hold those responsible accountable in collaboration with law enforcement.

“Another one down, more still to come,” concluded the Coinbase CEO.

Since the beginning of the year, hackers have stolen over $3.4 billion in cryptocurrency, according to Chainalysis.