## Truebit Protocol Security Incident: From Contract Vulnerability to TRU Token Collapse

Truebit Protocol has recently fallen victim to a large-scale attack, causing investors to lose complete confidence. On January 8, 2026, a vulnerability in the smart contract structure was exploited, resulting in a loss of $26.5 million. The native TRU token experienced a catastrophic collapse, dropping from $0.1659 to fractions of a cent within just a few hours.

## How was the contract structure flaw exploited?

According to analysis data from PeckShield, a blockchain security firm, the attacker targeted a specific weakness in the Truebit Protocol's codebase. The attack was not random – it shows signs of a carefully planned campaign.

The attacker executed a series of abnormal Ethereum transactions, then quickly withdrew nearly 8,500 ETH from the protocol’s funds. To avoid traceability, the stolen funds were split and distributed to two different wallet addresses (0x2735…cE850a and 0xD12f…031a60). This is a common tactic to complicate recovery efforts by authorities.

## TRU Token: From data to a brutal reality

The impact on the TRU token was immediate and devastating. Within minutes, the token’s price plummeted from the daily high of $0.1659 to nearly zero, with the current value at $0.01 according to recent data. Market capitalization was wiped out, liquidity on decentralized exchanges dried up, and thousands of investors found themselves stuck in their positions.

This collapse reveals a painful truth: the security of blockchain protocols directly influences token value. When trust is broken, investors run immediately.

## What is Truebit Protocol and why is it important?

Truebit Protocol is a specialized blockchain protocol in the field of verified computation. Simply put, it is a system that allows smart contracts to perform complex calculations more efficiently. When a protocol (giao thức) like Truebit is compromised, it not only affects token holders but also challenges the entire trust in the DeFi ecosystem.

## Official response from Truebit

Truebit has issued an urgent statement confirming a security breach. They warn the entire user community not to interact with the affected contract (0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2) until further notice.

The Truebit team announced they are working closely with law enforcement agencies and are committed to taking all necessary steps to minimize damage. All official updates will be shared exclusively through their official communication channels.

## Repeated attack pattern?

Concern arises as PeckShield discovered that the wallet address involved in the Truebit hack also participated in a previous attack on Sparkle Protocol, just 12 days earlier. In the Sparkle attack, the attacker also withdrew tokens and transferred them through Tornado Cash – a privacy tool that obscures transaction traces.

This pattern indicates the attacker is an experienced entity, continuously scanning DeFi projects for exploitable vulnerabilities. This poses a serious warning to the entire industry.

## Lessons learned from the incident

The Truebit hack is not just a single security incident – it’s a message that DeFi security still has many vulnerabilities. Projects need to conduct more thorough code audits, and investors should be more cautious when participating in new, unproven protocols.

Currently, the TRU token is at a very low level, and recovery will depend on the extent to which investor confidence can be restored, as well as the security improvements Truebit will implement.