TL;DR
- Truebit Protocol lost $26M due to an outdated contract flaw.
- TMXTribe lost $1.4M in an automated exploit over 36 hours.
- Ledger’s customer data was breached via a third-party payment processor.
Early 2026 saw a surge in crypto security failures. Extropy’s Security Bytes report details breaches across Web3 platforms during the year’s first fortnight. Attackers operated continuously through the holidays, executing multimillion-dollar heists and advanced phishing schemes.
January 8 marked Truebit Protocol’s $26 million loss. A hacker exploited an integer overflow flaw in outdated smart contracts. These legacy codes lacked Solidity’s built-in overflow safeguards. The attacker generated millions of TRU tokens at near-zero cost, drained all protocol liquidity, and erased the token’s value within 24 hours. They routed 8,535 ETH through Tornado Cash, linking the wallet to a prior Sparkle Protocol theft. Extropy stresses that dormant contracts remain high-risk unless actively retired or monitored.
From January 5 to 7, TMXTribe bled $1.4 million over 36 hours. The Arbitrum-based GMX fork fell to an automated exploit minting LP tokens, swapping them for stablecoins, and repeating. Unverified contracts blocked public scrutiny of the vulnerability. Developers stayed active on-chain during the drain, deploying updates but skipping the emergency pause function. They offered a bounty to the thief, who ignored it, bridged funds to Ethereum, and laundered them via Tornado Cash. Extropy flags unverified code as a critical red flag for users.
Web3 Security Failures: Physical and digital threats converge
January 5 brought Ledger’s customer data breach. Payment processor Global-e—not Ledger itself—exposed names, shipping addresses, and contacts. Extropy warns this enables “wrench attacks”, where criminals target hardware wallet owners physically. The irony stings: Ledger previously faced backlash for monetizing security features, yet a third party now jeopardizes users at no charge. The firm predicts tailored phishing attempts using stolen personal details.
A MetaMask phishing campaign stole $107,000 from hundreds of wallets. Researcher ZachXBT uncovered emails mimicking official notices about a “mandatory 2026 upgrade.” The messages used authentic templates and a festive MetaMask logo variant.
Instead of requesting seed phrases, the scam tricked users into signing malicious contract approvals, granting unlimited token access. Individual thefts stayed below $2,000 to avoid detection. Extropy reiterates: signing unknown contracts risks funds as severely as leaking private keys.
These events highlight a dual threat landscape. Attackers merge technical exploits—like legacy code flaws—with social engineering. Traditional finance cycles annual audits; crypto demands constant vigilance.
Truebit and TMXTribe show how technical debt becomes financial liability. Ledger’s breach proves security extends beyond code to human and physical layers. Users must verify contracts, distrust unsolicited communications, and guard personal data. The price of complacency now totals millions. Regulatory bodies worldwide face pressure to standardize audits while preserving decentralization’s core ethos.
For now, responsibility falls on projects to patch old systems and users to question every interaction. In crypto, trust remains a vulnerability—not a feature.
