Trust Wallet is currently grappling with a significant issue as it attempts to compensate victims of the recent hack involving its browser extension. The company has confirmed that 2,596 wallet addresses were compromised, yet it has received around 5,000 claims for compensation. This discrepancy has raised concerns about the validity of many claims, with a notable number appearing to be fraudulent.
In a statement released on Monday, Eowyn Chen, CEO of Trust Wallet, highlighted the challenges faced by the support team in processing these claims. The surge in submissions has forced the company to initiate stricter verification protocols to ensure that only legitimate victims receive their reimbursements. “We are seeing a significant number of false or duplicate submissions attempting to access victims” reimbursements,” Chen remarked.
Due to the overwhelming volume of claims, Trust Wallet is prioritizing thoroughness over speed in its refund process. Chen explained that the verification process involves analyzing multiple data points to differentiate between genuine users and those attempting to exploit the situation. As a result, genuine victims may experience delays in receiving their compensation while the team diligently filters out fraudulent requests. “We recognize the impact this incident has had on our users and appreciate their patience as we navigate this complex process,” Chen added.
Meanwhile, the investigation into how the malicious code was introduced into the browser extension continues. Chen indicated that while some data is still being finalized, the team has developed strong hypotheses regarding the mechanics of the breach. The hack itself resulted from a compromised version of the Trust Wallet browser extension (v2.68), which reportedly harvested user seed phrases, leading to losses estimated at around $7 million.
Trust Wallet has reiterated that addressing the fallout from this incident remains its highest priority, as the company works to ensure the security of its platform and protect its users from future threats.
