TRU Token Crashes 99% Amid Truebit Exploit

The Truebit Exploit

On January 11, Truebit published a statement on X revealing a “security incident involving one or more malicious actors.” Soon after, blockchain analysts like Cyvers and Lookonchain flagged an on-chain transaction that moved 8,535 ETH to a single address labeled “Truebit Protocol: Purchase.”

This activity quickly raised red flags due to its unusual flow and scale. Cyvers described the behavior as inconsistent with typical protocol transactions. Meanwhile, Lookonchain estimated the total ETH lost at over $26 million.

At the time of publication, Truebit had not offered further technical details. However, they confirmed that law enforcement had been notified and that internal investigations were underway.

Market Impact

Following the news, the price of TRU, Truebit’s native token, collapsed dramatically. According to Nansen, it fell over 99%, dropping from $0.16 to near-zero levels. This crash wiped out nearly all of the token’s market value and triggered panic among retail holders.

So far, there has been no confirmation on whether user funds were directly affected. Truebit has not issued any refunds or formal recovery plans.

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Context and Recent Trends

Truebit is designed to help Ethereum smart contracts perform complex off-chain computations securely and cost-effectively. It offers a mechanism for verifying heavy computations using cryptographic challenges, making it appealing for advanced Web3 applications.

This incident marks one of the first major security alerts of 2026. It follows a series of high-profile attacks in late 2025, including the $7M Trust Wallet exploit and a token forgery on the Flow blockchain.

Despite those setbacks, blockchain security firm PeckShield reported that total losses from hacks fell in December to $76M, down from $194M in November. However, Truebit’s case could push those numbers higher again in January.

What’s Unclear

The exact cause of the incident remains unknown. Cyvers has not confirmed whether it was an exploit or a mistaken contract execution. Truebit has also not confirmed if any protocol operations were intentionally paused.

Until more information becomes available, both investors and developers have been urged to avoid interacting with affected contracts.

What Comes Next

Truebit’s ability to respond quickly and transparently will shape the next phase of its recovery. For now, its community is in wait-and-see mode while analysts continue to track the movement of the stolen ETH.

The incident serves as a reminder that even technically focused infrastructure projects are not immune to security flaws. It also underscores the growing need for better real-time monitoring and on-chain risk detection.