Truebit Protocol Exploit Drains $26M ETH, TRU Token Plummets to Near Zero
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 09 2026- Attack Incident: On January 8, 2026, Truebit Protocol suffered an exploit due to a smart contract vulnerability, losing 8,535 ETH (approximately $26 million), which caused the TRU token price to collapse from $0.16 to nearly zero, erasing almost all liquidity.
- Vulnerability Analysis: Attackers exploited a pricing flaw in a five-year-old outdated contract that allowed for zero-cost minting of TRU tokens, rapidly extracting ETH through arbitrage loops, highlighting the risks associated with unupgraded code in DeFi protocols.
- Market Reaction: The TRU token experienced a 99.9% drop across exchanges like KuCoin and MEXC, with market capitalization becoming unquantifiable overnight, exacerbated by panic selling from users amid liquidity crises.
- Response Measures: Truebit has paused interactions with the affected contract and is in contact with law enforcement; however, no recovery plan or cause details have been disclosed yet, raising concerns over transparency and security in the DeFi ecosystem.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
