Trust Wallet says its products were not affected by a security issue at Web3Auth, the wallet authentication provider owned by Consensys. The problem did hit certain Keplr wallets, especially accounts created through Google or Apple login, according to statements from Web3Auth and Keplr.
What happened at Web3Auth
Web3Auth confirmed that an infrastructure issue exposed private keys for some embedded wallets connected to Keplr. The company suspended its embedded wallet service while it investigated. Keplr told users not to deposit into compromised accounts and said recovery work was underway. The date given in the discussion was November 7, and the response came after emergency service suspensions.
Blockchain analytics firm Bitquery estimated that attackers drained at least $6 million from more than 44,000 wallets. Those wallets were spread across eight Cosmos networks, including Cosmos Hub, Osmosis, Celestia, and Injective. That range matters because the damage is not limited to one chain or one app. It touches projects that use embedded wallets and Cosmos-linked assets.
Trust Wallet and other integrations
A Trust Wallet representative, Felix, said the wallet was unaffected. MetaMask also said it had no evidence of affected users, though the situation was still being watched. The impact on other third-party integrations is not fully confirmed yet. That leaves room for more details to emerge, perhaps in the next few days. For now, users should treat any wallet connected through embedded login providers with caution.
Security pressure keeps building
The incident adds to a rough stretch for crypto security. On October 29, Binance reportedly suffered a major breach involving around $6.3 billion. Bitget was hit by an exploit estimated at $387.5 million in September. Earlier in 2026, KelpDAO lost around $290 million after an exploit tied to cross-chain infrastructure.
DeFi protocols, wallet infrastructure, and smart contracts all carry risk. These incidents affect market sentiment and investor losses, and they can make safety questions harder to answer. Projects that rely on embedded wallet technology and Cosmos-related assets have been directly affected. Repeated failures could damage their market picture further.
There is no proven link between the Web3Auth exploit and a broader market decline, including Bitcoin and Ethereum. Investigations and protocol patches are being released more than 24 hours after the discovery. That is a reminder that wallet security is only as strong as the services behind it.
