Crypto Christmas Heist: Over $6 Million Lost, Trust Wallet Chrome Extension Wallet Hacked Analysis
Original Title: "Christmas Heist | Trust Wallet Browser Extension Wallet Hacked Analysis"
Original Source: SlowMist Technology
Background
Early this morning Beijing time, @zachxbt announced in the channel, "Some Trust Wallet users reported that funds in their wallet addresses have been stolen in the past few hours." Subsequently, Trust Wallet's official X also released an official statement confirming a security vulnerability in Trust Wallet Browser Extension version 2.68, advising all users using version 2.68 to immediately disable this version and upgrade to version 2.69.

Tactics
Upon receiving the intelligence, the SlowMist security team promptly conducted an analysis of the relevant samples. Let's first compare the core code of the previously released 2.67 and 2.68 versions:


By diffing the code of the two versions, we found the malicious code added by the hacker:

The malicious code will traverse all wallets in the plugin, make a "get mnemonic phrase" request for each user's wallet to obtain the user's encrypted mnemonic phrase, and finally use the password or passkeyPassword entered by the user when unlocking the wallet for decryption. If decryption is successful, the user's mnemonic phrase will be sent to the attacker's domain `api.metrics-trustwallet[.]com`.

We also analyzed the attacker's domain information; the attacker used the domain: metrics-trustwallet.com.

Upon investigation, the registration time of this malicious domain was 2025-12-08 02:28:18, and the domain registrar is: NICENIC INTERNATIONA.
Request records targeting api.metrics-trustwallet[.]com began on 2025-12-21.

This timestamp and the implantation of the backdoor with code 12.22 are roughly the same.
We continue to reproduce the entire attack process through code tracking analysis:
Through dynamic analysis, it can be seen that after unlocking the wallet, the attacker filled the mnemonic information into the error in R1.

And the source of this Error data is obtained through the GET_SEED_PHRASE function call. Currently, Trust Wallet supports two ways to unlock: password and passkeyPassword. The attacker, during the unlocking process, obtained the password or passkeyPassword, then called GET_SEED_PHRASE to obtain the wallet's mnemonic phrase (private key as well), and then placed the mnemonic phrase in the "errorMessage".

Below is the code using emit to call GetSeedPhrase to obtain the mnemonic phrase data and fill it into the error.

Traffic analysis performed through BurpSuite shows that after obtaining the mnemonic phrase, it is encapsulated in the request body's errorMessage field and sent to a malicious server (https[://]api[.]metrics-trustwallet[.]com), which is consistent with the previous analysis.

Through the above process, the theft of the mnemonic phrase/private key is completed. In addition, the attacker is also familiar with the source code and utilizes the open-source full-lifecycle product analysis platform PostHogJS to collect user wallet information.
Stolen Asset Analysis

(https://t.me/investigations/296)
According to ZachXBT's disclosed hacker address, we have calculated that as of the time of publication, the total amount of stolen assets on the Bitcoin blockchain is approximately 33 BTC (valued at around 3 million USD), the stolen assets on the Solana blockchain are valued at around 431 USD, and the stolen assets on the Ethereum mainnet and Layer 2 chains are valued at around 3 million USD. After stealing the coins, the hacker used various centralized exchanges and cross-chain bridges to transfer and exchange some of the assets.


Summary
This backdoor incident originated from a malicious code modification to the Trust Wallet extension's internal codebase (analytics service logic), rather than the introduction of a tampered third-party package (such as a malicious npm package). The attacker directly altered the application's own code, using the legitimate PostHog library to redirect analytics data to a malicious server. Therefore, we have reason to believe this was a professional APT attack, where the attacker may have gained control of Trust Wallet-related developers' device or release deployment permissions prior to December 8.
Recommendations:
1. If you have installed the Trust Wallet extension wallet, you should immediately disconnect from the internet as a prerequisite for investigation and actions.
2. Immediately export your private key/mnemonic phrase and uninstall the Trust Wallet extension wallet.
3. After backing up your private key/mnemonic phrase, promptly transfer your funds to another wallet.
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From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
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For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
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X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
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These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
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After the blockade of the Strait of Hormuz, when will the war end?
Before using Musk's "Western WeChat" X Chat, you need to understand these three questions
The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.
These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.
