Binance-Owned Trust Wallet Faces Fresh Scrutiny in US

By Sunil Gavhane

Published on:

Binance-Owned Trust Wallet Faces Fresh Scrutiny in US

Binance-Owned Trust Wallet Faces Fresh Scrutiny in US: A U.S. government office is looking into a security problem with Trust Wallet, owned by Binance, that might cause people to lose money.

The National Institute of Standards and Technology (NIST), part of the U.S. Department of Commerce, is looking into a possible security issue with Trust Wallet, owned by Binance.

Trust Wallet Faces Potential Security Breach

A recent report says there’s a security problem linked to a version of Trust Wallet because it wrongly used something called the “trezor-crypto library.”

The U.S. agency said that because the trezor-crypto library was used wrongly, hackers could create special words to take money from people’s Trust Wallets.

NIST explained that a hacker can use the mistake to make special memory-helping words in a certain period. Then, they can connect these words to a specific online wallet to get in and take its cryptocurrency.

NIST said that a similar security problem was used to attack systems in July 2023, leading to big losses for investors. Right now, NIST is looking into how much damage this weakness has actually caused.

Also, the agency added the Trust Wallet problem to a list they keep of all security issues that can lead to losing money.

Prior Security Breaches 

Trust Wallet, which started in November 2017, has had several security problems that resulted in people losing their money.

Even though Binance bought the wallet in 2018, the company that keeps cryptocurrency safe has still had many security problems. Last year, Trust Wallet said in some tweets that a hacker stole $4 million from one of its users.

Trust Wallet said that a group of criminals from Italy tricked someone into giving them money. The group attacked a popular game project called Webaverse. They took money without needing to know the wallet’s secret codes or passwords. This made people worry about how safe Trust Wallet is.

Disclaimer: The information on this website isn’t meant to be taken as advice for investing money. Investing involves uncertainty, and there’s a chance you could lose your money when you invest.

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