One of CZ's tweets hints at an insider threat, but Trust Wallet was one of the GitHub organizations pwned by Sha1 Hulud. What are the odds this is a fallout of that?

I can’t have any more schadenfreude than I have now

That is a great domain name.

I love the concept of cryptocoins. But in practice, there are some enormous hazards that make it not worthwhile IMO. This is just one such hazard, but by now we've seen several flavors of "this custody/storage mechanism failed to securely store some wealth." If securing it yourself, it's so easy to mishandle and either destroy your wealth or have it stolen. If delegating it to an "expert" you risk the custodial agent falling victim to theft/exit scam/ineptitude. Does any third party insure these agents?

Having a government-insured bank deposit means that I've never had to think about this in my lifetime. It's a problem that I don't need.

I believe the Achilles' heel of Web3 is really that is was built on Web1&2.

Whatever opinion you might have about this industry, the core work is done by the Ethereum folks and it is pretty admirable. They have been progressing for 10 years in a system where any mistake can collapse the entire system.

But ultimately those wallets and Web3 apps are built with web technologies and run in a browser and this is just not made for this.

This hack was targeting seed phases or private key because the keys have to be stored in the browser extension. How insane is that? But there isn't really any other ways to do it within the framework of a web browser.

Ultimately if the extension or web app is compromised an hardware wallet cannot really ultimately protect you (at least you would only be compromised when interacting with it).

Ethereum also now built in the secp256r1 signature checker so passkey/yubikey can be used but, same problem the "web" is the weak link.

Bottom line if they want that thing to succeed they will have to create a way to interact with smart contracts outside of the web browser. Maybe it will take building a simpler "dapp browser". Their apps are pretty basic in the end, a TUI would be enough to swap a token and approve a transaction...