Token Collapses 99.95% After $26M Exploit – Crypto News

The Truebit (TRU) token plunged more than 99.95% to near-zero on Jan. 8 after a $26 million exploit. Security firm Cyvers Alerts detected the anomaly when a single address siphoned approximately 8,535 ether. The sudden price drop followed reports of a security incident involving one or more malicious actors targeting the Truebit protocol.

The TRU token had been trading near $0.1663 before the breach but fell to $0.00005417 by 3 p.m. EST. Truebit confirmed it was in contact with law enforcement and taking all available measures to address the incident. Preliminary investigations suggest the exploit targeted a mispriced minting function within an old purchase contract.

The attack exploited a vulnerability in Truebit's smart contract system, allowing hackers to siphon 8,535 ETH from the protocol. The total value of the stolen assets is estimated at around $26.6 million. The affected smart contract address showed only small amounts of ETH stolen, but analysis from Lookonchain indicated the total loss was higher.

Why Did This Happen?

The breach appears to involve a mispriced minting function within a purchase contract, allowing attackers to acquire TRU tokens at a fraction of their market value. Social media analyst Weilin Li noted this flaw existed in an old contract, remarking that outdated code is becoming a frequent target for attackers.

The vulnerability allowed the exploit of the protocol's minting mechanism. Truebit confirmed it had engaged law enforcement and issued a safety warning advising users to avoid interacting with the affected smart contract. The protocol also confirmed the involvement of potentially two separate attackers.

How Did Markets React?

The TRU token's price collapsed hours after the breach was identified. The token had been trading near $0.16 before the attack but fell to $0.0000000029 by the time the incident was publicly confirmed. The sharp drop in value reflects the immediate loss of confidence in the protocol's security.

The broader crypto market also reacted negatively to the news. Bitcoin and Ethereum both experienced declines in the wake of the exploit. Market participants are now watching for further security developments and potential regulatory responses.

What Are Analysts Watching Next?

Blockchain security firms like PeckShield and Cyvers are monitoring the situation closely. They noted that this exploit followed a broader trend of increasing attacks in late 2025 and early 2026. Despite the incident, PeckShield reported a decline in total losses from hacks and exploits in December.

The Flow Foundation previously dealt with a $3.9 million exploit in December 2025 by halting the network and preventing further fake token trades. No user funds were lost in that incident, offering a contrast to the Truebit breach.

Truebit's response to the breach remains a focal point for investors and users. The protocol has not yet provided a detailed breakdown of the exploit or steps to recover the stolen assets. Analysts are waiting for further updates on user fund safety and long-term recovery plans.