While there have been many hacking incidents in the cryptocurrency industry, Trust Wallet, the cryptocurrency wallet owned by Binance, was among the hack victims.
While Trust Wallet suffered many cyber attacks in 2023, US authorities put Trust Wallet under investigation.
According to Coindesk, the National Institute of Standards and Technology (NIST) of the US Department of Commerce is investigating a possible security vulnerability in Binance's Trust Wallet iOS application.
It was stated that these vulnerabilities have the potential to enable hackers to steal money from cryptocurrency wallets.
At this point, NIST claimed in its statement that the trezor-crypto library used in the iOS version of Trust Wallet was misused in the production of mnemonic words that are critical for wallet security.
It was also stated that this vulnerability caused by the production of mnemonic words led to a hacking incident with financial loss in July 2023.
Regarding the vulnerability caused by these mnemonic words, NIST said:
“With this existing vulnerability, an attacker can systematically create mnemonic words at any time within a valid time period and link them to specific wallet addresses to steal funds from these wallets.”
The Trust Wallet wallet, purchased by Binance in 2018, was exposed to many cyber attacks in 2023 and suffered over 4 million dollars in damage.
Following this news, the price of Trust Wallet's native token TWT dropped and fell below $1.2.
*This is not investment advice.
