Truebit Token Plunges After Protocol Confirms $26M Ethereum Exploit

Truebit Token Plunges After Protocol Confirms $26M Ethere... TruebitâEUR(TM)s TRU token collapsed after the protocol confirmed a smart contract exploit that drained about 8,535 ETH, roughly $26M. The post Truebit Token Plunges After Protocol Confirms $26M Ethereum Exploit appeared first on Cryptonews. TruebitâEUR(TM)s TRU token went into free fall Thursday after the protocol disclosed a security incident tied to one of its Ethereum smart contracts, with on-chain trackers pointing to a haul of about 8,535 ETH, roughly $26M at recent prices.Truebit said the incident involved âEUR?"involving one or more malicious actorsâEUR and told users it was in contact with law enforcement and âEUR?"taking all available measuresâEUR in response.The theft estimate, cited by crypto sleuths monitoring the protocol, put the missing Ether at 8,535 ETH, with the dollar value near $26.6M at the time of reporting.For traders, the shock spread quickly as smart contract failures rarely stay isolated and often ripple through liquidity, confidence and prices across exchanges. Today, we became aware of a security incident involving one or more malicious actors. The affected smart contract is 0x764C64b2A09b09Acb100B80d8c505Aa6a0302EF2 and we strongly advise the public not to interact with this contract until further notice. We are in contact with lawâEUR¦- Truebit (@Truebitprotocol) January 8, 2026 Smart Contract Bug Allegedly Enabled Free Token MintingTruebit is built to tackle one of blockchainâEUR(TM)s core limits, the high cost of on-chain computation. It aims to let applications verify complex calculations without running every step on Ethereum, shifting heavy logic off-chain while preserving on-chain verification for advanced smart contract and compute use cases.The protocol flagged malicious activity linked to its âEUR?"Truebit Protocol: PurchaseâEUR contract and urged users to avoid interacting with the address until further notice.Investigators have not seen a full technical postmortem yet. On-chain analysis cited in reporting pointed to a pricing logic failure in the getPurchasePrice function, where unusually large mint requests allegedly returned a zero cost, letting an attacker mint tokens for free and cycle them through a bonding curve to drain ETH reserves. #PeckShieldAlert @Truebitprotocol has been exploited for ~$26.5M. The exploiter has transferred the stolen funds (8.5K $ETH) to 2 addresses: 0x2735...cE850a & 0xD12f...031a60$TRU has dropped -100%. Notably, the same exploiter attacked $Sparkle ~12 days ago, obtaining 5 $ETHâEUR¦ pic.twitter.com/6JwqeulT5h- PeckShieldAlert (@PeckShieldAlert) January 9, 2026 Attackers Route Stolen Ether Through Tornado CashTransaction trails also showed aggressive clean-up behavior after the drain, including consolidation into a main address and routing of a large share through Tornado Cash, the kind of step that typically signals planning rather than a lucky stumble.The marketâEUR(TM)s verdict came quickly. On-chain investigators reported TRU fell more than 99%, with Nansen data showing a drop to about $0.0000000029 from around $0.16.The timing also feeds into a broader security narrative. PeckShield recently said total crypto hack and exploit losses fell to about $76M in December from $194.2M in November, a 60% drop that still left the ecosystem dealing with constant pressure from both protocol bugs and user-targeted scams.PeckShieldâEUR(TM)s breakdown included a $50M address poisoning loss and another incident tied to a private key leak in a multisig wallet that cost about $27.3M.Truebit has not yet said what remediation looks like, and it remains unclear what triggered the exploit and whether user funds were at risk. The post Truebit Token Plunges After Protocol Confirms $26M Ethereum Exploit appeared first on Cryptonews. Market Context The cryptocurrency market remains highly dynamic, with digital assets experiencing significant price movements driven by institutional adoption, regulatory developments, and technological innovations. Investors should consider both the potential rewards and risks associated with crypto investments. Key Takeaways Stay updated on cryptocurrency market developments and price movements Monitor regulatory news that could impact digital asset valuations Consider risk management strategies for volatile crypto investments Published: January 9, 2026 | Source: CryptoNews