Trust Wallet class action lawsuit overview:
- Who: Plaintiff Kuang Yu Lin filed a class action lawsuit against Trust Wallet Inc.
- Why: Lin claims Trust Wallet enabled widespread cryptocurrency fraud against unsuspecting users.
- Where: The Trust Wallet class action lawsuit was filed in New York federal court.
A new nationwide class action lawsuit alleges Trust Wallet enabled widespread cryptocurrency fraud against unsuspecting users.
Plaintiff Kuang Yu Lin’s class action lawsuit claims Trust Wallet designed and deployed a decentralized application browser (dApp) that enabled fraudulent third-party sites to be embedded within its platform.
Lin argues that Trust Wallet failed to warn users about the risks associated with these embedded sites, allowing scammers to exploit the platform’s security claims to deceive users into transferring cryptocurrency to fraudulent investment interfaces.
Lin wants to represent a nationwide class of consumers who used Trust Wallet’s dApp browser to access third-party platforms and were defrauded of cryptocurrency assets during the applicable statute of limitations period.
Plaintiff claims he lost more than $170K due to unvetted dApps
Lin claims Trust Wallet failed to warn, restrict or vet embedded third-party sites despite advertising itself as a secure platform with proactive fraud alerts.
“Trust Wallet’s failure to warn, restrict or vet such embedded third-party sites, combined with advertising claims about security and fraud protection, constitutes a violation of New York General Business Law,” the Trust Wallet class action lawsuit alleges.
Lin claims he was lured into depositing $171,177 in cryptocurrency into a fraudulent investment interface embedded within Trust Wallet’s dApp browser, believing it was a legitimate part of the platform.
The plaintiff argues that, when he attempted to withdraw his funds, the dApp redirected to a blank shell and all of his funds were lost.
“The same scam has affected numerous victims nationwide, exploiting Trust Wallet’s failure to implement adequate warnings, controls or vetting of dApps,” the Trust Wallet class action lawsuit alleges.
Lin claims Trust Wallet is guilty of violating New York General Business Law, negligent misrepresentation and common law fraud. He demands a jury trial and requests declaratory and injunctive relief and an award of compensatory and punitive damages for himself and all class members.
Currently, the cryptocurrency exchange Coinbase is facing a class action lawsuit that accuses the company of failing to protect its users from a “pig butchering” scam.
What do you think of the allegations made in this Trust Wallet class action lawsuit? Let us know in the comments.
The plaintiff is represented by Jacob Chen of DGW Kramer LLP.
The Trust Wallet class action lawsuit is Kuang Yu Lin v. Trust Wallet Inc., Case No. 1:25-cv-06657, in the U.S. District Court for the Southern District of New York.
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