Truebit protocol, an Ethereum-based DeFi, announced a security incident relating to one of its smart contracts on January 8 through its official X handle. They also mentioned that they have been working with law authorities to address the issue, and suggested users not to connect to that specific smart contract till the issue is resolved.
Before Truebit’s verification, the on-chain analytics platform Lookonchain stated that this protocol had been exploited with 8,535 ETH, worth around $26.44 million.
Then, on the same day, CertiK Alert on its X handle flagged an unusually large on-chain transaction involving the Truebit protocol. It has been noted that the wallet linked to Truebit has shifted 8,535 ETH into one address, which involves a pattern that did not match the normal protocol activity and marked it as suspicious.
The thread post explains that the attacker abused a logic flaw in a purchase or minting contract, where the pricing calculation broke for certain inputs and effectively returned an incorrect value, showing a very low cost. The attacker figured this out and used the bug again and again, was able to mint or redeem assets improperly, and drain ETH from the protocol’s reserves.
Truebit (TRU) Token Price Collapses
After the news of Truebit’s smart contract exploit incident, the TRU token has immediate effect on its price, which has fallen sharply by 99.99% in the last 24 hours, and it dropped from $0.16 to $0.00000001845, as this instant price decline depicts the trader’s reaction to Truebit’s loss and the uncertainty surrounding it.
So far, Truebit has not released any official updates or recovery plans; instead, they stated that any incident-related information would be shared through its official channels.
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