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Trust Wallet browser extension experienced a supply chain attack in version v2.68. Hackers embedded malicious code disguised as the PostHog analytics tool to successfully intercept users' imported seed phrases. Within just a few hours, hundreds of wallets were quickly emptied, with confirmed losses exceeding $7 million.
The severity of this incident lies in its stealthiness—malicious code was disguised very similarly to common data analysis libraries, making it difficult to detect. Victimized users had no idea that their seed phrases were being stolen in real-time during wallet import.
A major exchange's official statement followed, indicating that affected users would receive full compensation and that their funds are secure. This promise served as a timely reassurance.
However, the incident also exposed a long-standing issue: although non-custodial wallets claim to give users full control, the browser extension itself is a high-risk component. Excessive plugin permissions, high difficulty in code auditing, and multiple supply chain links—any weak point could become an entry point for attacks.
The most direct lesson is: **Browser hot wallets are not suitable for storing large amounts of funds, and seed phrases should never be imported casually**. Cold wallets and hardware wallets are the correct long-term storage solutions. If hot wallets must be used, strict limits should be enforced—only transfer what is necessary. Additionally, regularly checking plugin versions and paying attention to official security notices are crucial.
This incident once again reminds the entire community: while self-custody is important, the responsibility for self-protection must keep pace.