Amid already fragile sentiment across the cryptocurrency market, attackers exploited Trust Wallet, undermining trust in self-custody solutions. The breach has affected hundreds of users, and on-chain data shows that more than $6.77 million has already been stolen. The timing has amplified concern, as it comes at a time when investors are already experiencing increased uncertainty, falling prices and growing risk aversion.
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According to the Trust Wallet team, the exploit appears to be linked to a recent update to its Chrome browser extension. In a public statement posted on The message suggests that the vulnerability was isolated to a specific version of the extension, rather than the core infrastructure of the wallet, but the magnitude of the losses has nonetheless raised alarm.
Trust Wallet is one of the most used self-custody wallets in the industry. Reporting a user base of approximately 220 million people worldwide. That scope makes any security incident particularly significant, not only because of the direct financial impact, but also because of the broader implications for trust in non-custodial platforms.
As investigations continue and affected users assess the damage, the exploit adds another layer of stress to a market already facing weak sentiment and heightened skepticism toward crypto infrastructure.
Funds tracked as Trust Wallet commits to full refund
On-chain researchers have begun tracking the movement of funds linked to the Trust Wallet exploit. According to an analysis shared by Lookonchain, the attacker has already transferred approximately $5.5 million through a combination of instant trading services and centralized exchanges, including ChangeNOW, FixedFloat, KuCoin, and HTX.
The diversion of funds through multiple channels suggests an attempt to obscure flows and accelerate laundering. A pattern commonly observed in recent wallet attacks.
Despite the continued movement of stolen assets, Trust Wallet has acted quickly to reassure users. Binance founder and former CEO Changpeng Zhao (CZ) publicly stated that Trust Wallet will fully cover all user losses resulting from the incident. This commitment has been essential in calming concerns. Particularly given the wallet’s large global user base and the broader climate of weakened trust in crypto infrastructure.
The Trust Wallet team subsequently reinforced this position with a formal statement, confirming the magnitude of the impact and outlining next steps. “We have confirmed that approximately $7 million has been affected and we will ensure that all affected users receive a refund,” the team said.
The team added that supporting affected users is the top priority and that they are actively finalizing the refund process. The statement also warned users to avoid interacting with messages that do not originate from official Trust Wallet channels.
As tracking of funds continues, attention has shifted from assessing damages to enforcing refunds and restoring user trust.
Altcoin Market Holds Key Support as Broader Structure Weakens
The total cryptocurrency market capitalization, excluding Bitcoin and Ethereum, is trading near the $825 billion level on the weekly chart. After a sharp decline from the highs of between 1.1 and 1.2 trillion dollars reached at the beginning of this year. This index, used as an indicator of the broader health of the altcoin market, shows a clear loss of momentum after an aggressive expansion phase. Signaling increasing stress throughout the altcoin sector.
Technically, the market has fallen below its fastest weekly moving average, which previously acted as dynamic support during the uptrend. That level has now turned into resistance, limiting bullish attempts.
Currently, the price sits just above the long-term moving averages, which converge between approximately $780 billion and $820 billion. This zone represents a critical area of structural support. A sustained break below it would likely confirm a broader bearish transition for altcoins.
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From a market structure perspective, maintaining the current range keeps the possibility of consolidation alive. However, failure to defend this support would open the door to a deeper pullback towards the region of between $650 billion and $700 billion. For a bull case to emerge again, the altcoin market would need to reclaim the $900 billion level and reestablish acceptance above its key moving averages.
Featured image from ChatGPT, chart from TradingView.com
