The TrueBit Protocol has been hit by a significant security breach, leading to a massive loss of funds and a dramatic decline in its native token's value. This incident highlights the vulnerabilities that can exist in legacy smart contracts, and the document underscores a growing issue that raises concerns within the crypto community.
Attack Overview
Attackers exploited a flaw in a legacy smart contract, draining approximately 8,535 ETH, which was valued at around 266 million USD at the time of the breach. The exploit was centered on a mispriced minting function, allowing the attackers to mint TRU tokens at nearly zero cost. They then sold these tokens back into the protocol's bonding curve reserve, extracting Ether directly from the system.
Impact on TRU Token Value
In the aftermath of the attack, the value of the TRU token plummeted by 999%, dropping from approximately 0.16 to near-zero levels of about 0.0000077. This rapid decline was exacerbated by the swift evaporation of liquidity across markets, leaving investors in a precarious position.
Response from TrueBit
TrueBit has acknowledged the breach and is currently collaborating with law enforcement to investigate the full extent of the damage.
In contrast to the recent security breach affecting the TrueBit Protocol, Tether's gold-backed token, XAUT, has experienced significant growth, with its market capitalization soaring to $23 billion. For more details, see more.
