The Trust Wallet team took a few days to address and fix an issue that imposed a threat to the funds of users. However, they have also issued a warning on further associated risks. The firm did not acknowledge the issue for several months and has now made it public how users might have to shift to new wallet addresses to keep their funds safe.
Through its Twitter account, Trust Wallet mentioned that users are safe if they used the Trust Wallet application, or used the browser extension to create a new wallet before November 14, 2022, or after November 23, 2022.
The platform further stated,
“You are affected if receive a warning notification about this vulnerability in the Browser Extension and created the wallet address in Extension between Nov 14-23, 2022.”
3/10 You are affected if receive a warning notification about this vulnerability in the Browser Extension and created the wallet address in Extension between Nov 14-23, 2022.
If that’s the case, then please keep reading for important instructions.
— Trust Wallet (@TrustWallet) April 22, 2023
Trust Wallet said that it was alerted about the problem by an external security researcher, who had highlighted a fault in its open-source library. The fault would have exposed private keys to a major security risk. Despite securing the funds of many users, Trust Wallet reported that funds of approximately $88,300 are still prone to greater risk.
Trust Wallet added,
“We urge affected users to move their funds ASAP. AVOID using addresses provided by others.”
4/10 The majority of funds at risk have been secured by users. ~$88k total balance left on affected addresses. We urge affected users to move their funds ASAP. AVOID using addresses provided by others.
— Trust Wallet (@TrustWallet) April 22, 2023
However, the firm did acknowledge that a percentage of users fell victim to the vulnerability, but promised to offer them a full refund. As per an estimate, around $170K worth of funds were stolen in two exploit attempts.
Trust Wallet Continues to Make Amendments
Trust Wallet mentioned its major goal was to help users safeguard their funds and prevent any losses. The platform believes one-on-one communication would empower users to take the necessary action in case of any such mishap. Therefore, the platform reached out to users through different warning messages and push notifications.
The messages outlined the instructions for users to follow regarding the transfer of their assets. At the same time, the firm offered the reimbursement of total gas fees for transferring funds to uncompromised wallets. The total gas fees that were reimbursed accounted for almost $7,700.
Trust Wallet asked for Binance’s help to reach out to customers who had funds that could be traced back to the exchange. However, no personal information of users was shared with Binance as a security measure. Trust Wallet thanked Binance for carrying out multiple risk assessments, conducting impact analysis, and also communicating with the security researcher.
Lastly, the wallet service provider said,
“We apologize for any inconvenience & are working to rectify this for affected users. Sincere thanks to White-hat community for invaluable contributions via bug bounty. We welcome more submissions & appreciate your support in keeping our ecosystem secure!”
8/10 We apologize for any inconvenience & are working to rectify this for affected users. Sincere thanks to White-hat community for invaluable contributions via bug bounty. We welcome more submissions & appreciate your support in keeping our ecosystem secure!
— Trust Wallet (@TrustWallet) April 22, 2023
Trust Wallet Token (TWT) Suffers Amid Recent Developments
The native token of the platform suffered a downtrend in the market after news of potential security lapses broke out. Plus, the uncertain market dynamics have also had a toll on the token’s price. After losing over 3.51% during the last day, TWT is currently trading at $1.18.
The token has lost over 9% in the last seven days which has pushed the token down to number 87 in the list of top cryptocurrencies by market cap with a market cap of about $491 million.
