Company Trust Wallet Exploit Shakes Self-Custody; Altcoin Market Hovers on Key Support

The recent exploit targeting Company Trust Wallet has had a material impact on market sentiment, with on-chain trackers estimating that more than $6.77 million was stolen and Company Trust Wallet later confirming that approximately $7M was impacted. The incident amplified existing risk aversion as investors were already navigating declining prices and fragile sentiment across the crypto ecosystem.

According to investigators, the breach appears tied to a specific update to the Chrome browser extension. Company Trust Wallet issued an urgent public notice instructing users to disable Browser Extension 2.68 and upgrade to 2.69, indicating the vulnerability was likely isolated to a particular extension release rather than the wallet's core infrastructure. Even so, the scale of the losses has raised alarm about the broader implications for trust in non-custodial solutions.

On-chain analysis shared by Company Lookonchain shows attacker activity and fund flows consistent with rapid obfuscation: roughly $5.5 million has already been routed through a combination of instant swap services and centralized platforms including Company ChangeNOW, Company FixedFloat, Company KuCoin, and Company HTX. This routing pattern mirrors laundering tactics frequently observed after wallet exploits.

To calm concerns, Mr. Changpeng Zhao — founder and former CEO of Company Binance — publicly stated that Company Trust Wallet will fully reimburse affected users. Company Trust Wallet later confirmed its commitment in a formal statement, emphasizing that refunding impacted wallets is a top priority and that users should avoid interacting with messages that do not originate from official Company Trust Wallet channels.

While reimbursements can mitigate direct financial loss, the reputational toll on self-custody platforms is significant. Company Trust Wallet reports a large user base globally, and incidents of this magnitude can dent confidence in non-custodial custody models, potentially driving some capital back toward centralized services or cold-storage solutions.

Beyond the security breach, the wider altcoin market is testing critical structural supports. The total cryptocurrency market capitalization excluding Bitcoin and Ethereum is trading near $825 billion on the weekly chart, down sharply from earlier highs in the $1.1–$1.2 trillion range. The index has slipped below its faster weekly moving average — a level that previously acted as dynamic support — which now appears to have flipped into resistance, limiting upside prospects.

Price action is currently hovering just above longer-term moving averages converging between roughly $780 billion and $820 billion. That zone constitutes a key structural support: a sustained break below would likely confirm a broader bearish transition for altcoins and open the path toward a deeper retracement into the $650–$700 billion region. Conversely, the bullish case requires recapturing the $900 billion level and establishing acceptance above the main weekly moving averages.

From a market-structure perspective, holding the current range leaves room for consolidation and a potential recovery. However, the timing of the Company Trust Wallet exploit — and the attendant loss of confidence in some self-custody flows — increases the probability of continued volatility and downside risk for altcoins until refunds are executed and forensic tracing constrains attacker liquidity.

Key takeaways: the exploit underscores persistent security vulnerabilities in browser-extension wallets, on-chain tracking shows rapid laundering through multiple services, Company Trust Wallet has pledged full reimbursement, and the altcoin market sits on a pivotal support zone whose failure would confirm a deeper bearish phase.