"Heavy reliance on hot wallets remains a significant risk factor for SMEs, as convenience often comes at the cost of greater exposure to malware, malicious updates and private-key theft. The Trust Wallet hack in December 2025, which resulted in losses of about $7 million, provides security-relevant insights for small and medium enterprises (SMEs) that use cryptocurrencies. Although Trust Wallet primarily serves individual users, the mechanics of the attack highlight common vulnerabilities that also affect crypto-friendly SMEs, including fintech firms and decentralized autonomous organizations (DAOs)."
"The December 2025 Trust Wallet hack shows that vulnerabilities in crypto tools can affect crypto-friendly SMEs, even when attacks target individual users rather than businesses. Supply-chain risks, such as compromised browser extensions or stolen API keys, can bypass traditional security defenses and lead to rapid financial losses in a very short time. The incident also revealed how weak or unprepared verification processes can overwhelm compensation efforts, increasing operational strain and delaying legitimate reimbursements."
The December 2025 Trust Wallet breach used a malicious Chrome extension update affecting version 2.68 and resulted in roughly $7 million in losses. The attack illustrated how supply-chain compromises and stolen API keys can bypass standard defenses and trigger rapid financial drain. Weak or underprepared verification and claims handling overwhelmed compensation processes, creating delays and operational strain. Heavy reliance on hot wallets increased exposure to malware, malicious updates and private-key theft. SMEs, fintechs and DAOs share these vulnerabilities. Recommended mitigations include minimizing hot-wallet holdings, strengthening verification and incident response, vetting third-party extensions and pursuing clearer regulatory guidance for compensation and disclosure.
Read at Cointelegraph
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