- The TRU token collapsed from $0.1659 to almost zero, wiping out its market value.
- The attack depleted liquidity on the decentralized exchange.
- The attacker wallet was linked to the Sparkle protocol attack 12 days ago.
A serious security breach in the Truebit protocol led to one of the sharpest collapses seen in decentralized finance this year.
A blockchain project focused on verified computing lost about $26.5 million after attackers exploited a weakness in its smart contract system.
The incident drove the protocol’s native TRU token to near zero and left decentralized exchanges severely lacking in liquidity.
The on-chain movement following the exploit shows how quickly funds were drained and highlights the ongoing risks associated with smart contract design and monitoring across the DeFi sector.
How the exploit unfolded
The breach was first reported by a blockchain security company. PeckShieldIt detected a series of suspicious transactions. Ethereum network.
Analysis shows that the attackers drained nearly 8,500 ETH from Truebit Protocol.
The value of stolen cryptocurrency at the time of the exploit was approximately $26.5 million.
On-chain data shows that the funds were quickly split, leaving 0x2735… cE850a and 0xD12f… Sent to two separate wallet addresses identified as 031a60.
Splitting funds in this way is a commonly used technique to complicate tracking and reduce the likelihood of recovery.
PeckShield’s preliminary findings indicate that the attack targeted flaws within the protocol’s contract structure, but a detailed technical analysis has not yet been released.
Token collapse and liquidity shock
The market impact was immediate. Truebit’s native TRU token nearly collapsed, falling from a daily high of $0.1659 to a low of $0.000000018.
This move effectively erased the token’s market capitalization within hours.
Liquidity on decentralized exchanges also dried up quickly.
With pools depleted and confidence shaken, many token holders were unable to close their positions.
This episode highlighted how token valuation is closely tied to protocol security. This is especially true for smaller DeFi projects, where trust can quickly evaporate once abuse is identified.
Protocol response and quarantine steps
Following the breach, Truebit Protocol issued an official update acknowledging the incident.
The team confirmed that a specific smart contract had been compromised and warned users not to interact with it until further notice.
The protocol states that it is cooperating with law enforcement authorities and taking steps to limit further damage.
Users were also advised to rely only on official communication channels for updates as the investigation continues.
A timeline for resolution or potential recovery efforts has not yet been shared.
Links to previous DeFi attacks
PeckShield also reported that the wallet implicated in the Truebit exploit was linked to a separate attack. Spsheet code About 12 days ago.
In this case, the attacker obtained the tokens and later routed the funds through: toRenado cashA privacy service often used to obscure transaction tracking.
Repeated use of similar techniques indicates that a skilled attacker is actively searching for vulnerabilities.
The connection has raised broader concerns across the DeFi ecosystem, where a series of linked attacks could amplify risk perception beyond the affected projects.