TLDR
- A security incident allowed malicious actors to drain approximately 8,535 ETH from the protocol.
- The price of the TRU token plummeted by 99% almost immediately, reaching all-time lows following the news.
- The Truebit team confirmed they are in contact with law enforcement to attempt to mitigate the impact.
This Thursday, the decentralized finance (DeFi) segment was shaken by the Truebit protocol exploit, which resulted in an estimated loss of $26.6 million in Ethereum.
The incident was confirmed by the Truebit team through a post on their X account, noting that “one or more malicious actors” were involved in the event. On-chain security researchers detected that the attacker managed to extract at least 8,535 ETH, leaving the affected smart contract with minimal balances compared to its previous state.
The market reaction was immediate and devastating. As soon as the first reports of the Truebit protocol exploit spread, the value of the native token, TRU, went into a freefall. According to data provided by Nansen, the price crashed more than 99%, dropping from trading around $0.16 to a virtually zero value of $0.0000000029.
This massive devaluation reflects an immediate loss of investor confidence given the scale of the vulnerability.
Crypto Cybersecurity: A New Year Marked by Vulnerability
Although the Truebit team stated they are “taking all available measures” and collaborating with law enforcement, the exact technical mechanism that allowed the breach remains unclear. The Truebit protocol exploit joins a growing list of significant attacks that closed out 2025, including incidents at the Flow Foundation and the Trust Wallet browser extension.
Despite reports from PeckShield indicating a general decrease in monthly hacking losses toward the end of last year, the Truebit protocol exploit highlights that smart contract risks remain a latent threat.
As of now, it is unknown whether a compensation plan exists for those affected or if the protocol’s structure will be able to recover from this financial and reputational blow. The community is advised to exercise extreme caution and avoid interacting with the compromised contract until an official, detailed report is released.
