Multi-chain altcoin wallet provider Trust Wallet, which received praise from Binance CEO Changpeng Zhao in late 2022 and subsequently gained value, has made a statement regarding a mysterious theft of $4 million from its user’s account. Here are the details…
Hack alert in altcoin project
cryptocoin.com As we have also reported, TrustWallet, which Binance CEO praised and increased the price of altcoin project TWT, seems to be the subject of a fraud. Rumors of the theft began to circulate on Monday, January 6th. According to rumors, a scammer stole $4 million worth of crypto assets from a Trust Wallet user with just a picture of the user’s balance. The hacker never used any seed phrases or passwords to access the account. Trust Wallet used Twitter to share a statement explaining the events behind the hack.
1/ This week, an organised crime unit from Rome stole $4M from one of our users.
It was stated, the thief ‘took a picture’ of the user’s Wallet balance to steal the funds.
We’ve done investigating into the events and believe this is how it happened…🧵👇
— Trust – Crypto Wallet (@TrustWallet) February 8, 2023
According to Trust Wallet’s statement, he investigated the mysterious theft and made an interesting observation. The idea behind the hack is that of a criminal organization that has been stealing from other wallet providers in areas like Barcelona and Milan. Besides the victims, many crypto community members reported that criminals were also accessing them. The hackers tricked users by disguising themselves as Web3 project investors.
Hackers avoid multi-sig wallets
Trust Wallet also revealed that these criminals approach users who want proof of funds in hot wallets before taking action. Hackers spend weeks convincing their victims to transfer their funds from a multi-signature wallet to a single-key Trust Wallet. Multi-signature wallets usually require two or more private keys before signing in and sending a transaction. Therefore, it will be more difficult for hackers to gain access to a multi-sig (multi-signature) wallet than a single-key wallet.
The wallet provider also revealed that the hacker shared a confidentiality agreement file they suspect contains malware and fake KYC information with the victim. The malware exposed vulnerabilities that allowed the thief to access the user’s wallet and move the funds. After explaining the hacking process, Trust Wallet concluded its statement by advising users to be on the lookout for scammers. In other words, users need to make sure their funds are safe with Trust Wallet, but they must be vigilant to prevent criminals from taking advantage of them.
Wallet providers seek solutions to hack attacks
Hacking attacks are nothing new to the crypto industry anymore. Hackers have developed malicious strategies to steal money from unsuspecting customers on altcoin platforms. Some add phishing sites to online crypto platforms to entice users to transfer their money without knowing it. Some even patch malicious codes and hijack user actions via phishing websites. Last year, Binance CEO Changpeng Zhao advised users to be on the lookout for phishing scams that pop up in Google search results.
In a recent report, CertiK Alert revealed that hackers hacked Azuki’s official Twitter account and offered links that they stole about $758,000 from the platform. The BonqDAO protocol also witnessed an oracle attack. Given the constant account privacy and hacking attacks in the crypto ecosystem, many wallet providers have integrated new features to protect users. Also, on January 27, the Phantom NFT platform announced new security features in its wallet app.
