The TRU token collapsed from $0.1659 to near zero, wiping out market value.
\nLiquidity on decentralised exchanges dried up following the exploit.
\nThe attacker wallet was linked to a Sparkle protocol attack 12 days earlier.<\/p>\n
A serious security breach at Truebit Protocol has triggered one of the sharpest collapses seen in decentralised finance this year.<\/p>\n
The blockchain project, which focuses on verified computing, lost around $26.5 million after an attacker exploited a weakness in its smart contract system.<\/p>\n
The incident sent the protocol\u2019s native TRU token crashing to near zero and left liquidity across decentralised exchanges severely strained.<\/p>\n
On-chain movements following the exploit show how quickly funds were siphoned away, highlighting ongoing risks around smart contract design and monitoring across the DeFi sector.<\/p>\n
The breach was first flagged by blockchain security firm PeckShield<\/span><\/span><\/a>, which detected a series of suspicious transactions on the Ethereum<\/span><\/span> network.<\/p>\n Analysis showed that the attacker drained nearly 8,500 ETH from Truebit Protocol.<\/p>\n At the time of the exploit, the stolen cryptocurrency was valued at about $26.5 million.<\/p>\n On-chain data indicates that the funds were quickly split and transferred to two separate wallet addresses, identified as 0x2735\u2026cE850a and 0xD12f\u2026031a60.<\/p>\n Dividing funds in this way is a commonly used technique to complicate tracking and reduce the chances of recovery.<\/p>\n PeckShield\u2019s preliminary findings suggest the exploit targeted a flaw within the protocol\u2019s contract structure, although a detailed technical breakdown has not yet been published.<\/p>\n The market impact was immediate. Truebit\u2019s native TRU token suffered a near-total collapse, falling from a daily high of $0.1659 to a low of $0.000000018.<\/p>\n The move effectively erased the token\u2019s market capitalisation within hours.<\/p>\n Liquidity across decentralised exchanges also dried up rapidly.<\/p>\n With pools depleted and confidence shaken, many token holders were unable to exit positions.<\/p>\n The episode underlined how tightly token valuations are linked to protocol security, particularly for smaller DeFi projects where confidence can evaporate quickly once an exploit is confirmed.<\/p>\n After the breach, Truebit Protocol issued an official update<\/a> acknowledging the incident.<\/p>\n The team confirmed that a specific smart contract had been compromised and warned users not to interact with it until further notice.<\/p>\n The protocol stated that it is working alongside law enforcement authorities and taking steps to limit further damage.<\/p>\n Users were also advised to rely only on official communication channels for updates as investigations continue.<\/p>\n No timeline has yet been shared for remediation or potential recovery efforts.<\/p>\n PeckShield further reported that the wallet involved in the Truebit exploit had been connected to a separate attack on the Sp<\/span><\/span>arkle<\/span><\/span> protocol<\/span><\/span> roughly 12 days earlier.<\/p>\n In that case, the attacker acquired tokens and later routed funds through To<\/span><\/span>rnado<\/span><\/span> Cash<\/span><\/span>, a privacy service often used to obscure transaction trails.<\/p>\n The repeated use of similar techniques points to an experienced exploiter actively scanning for vulnerabilities.<\/p>\n The connection has raised broader concerns across the DeFi ecosystem, where a series of linked attacks can amplify risk perception beyond the affected projects.<\/p>\n The post Truebit protocol hack exposes DeFi security risks as TRU token collapses<\/a> appeared first on CoinJournal<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" The TRU token collapsed from $0.1659 to near zero, wiping out market value. Liquidity on decentralised exchanges dried up following the exploit. The attacker wallet was linked to a Sparkle protocol attack 12 days earlier. A serious security breach at Truebit Protocol has triggered one of the sharpest collapses seen in decentralised finance this year. […]<\/p>\n","protected":false},"author":0,"featured_media":6005,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[100],"tags":[],"class_list":{"0":"post-6004","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ethereum"},"acf":[],"_links":{"self":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6004","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/comments?post=6004"}],"version-history":[{"count":0,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/posts\/6004\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media\/6005"}],"wp:attachment":[{"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/media?parent=6004"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/categories?post=6004"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digkrypton.com\/index.php\/wp-json\/wp\/v2\/tags?post=6004"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Token collapse and liquidity shock<\/h2>\n
Protocol response and containment steps<\/h2>\n
Link to earlier DeFi attack<\/h2>\n