Truebit in 2010 In 2026, the first Major Defy hack cost $26.5 million.

The exploit created a flaw in Truebit's pricing logic, which allowed the attacker to issue unlimited TRU tokens and ETH reserves.

The Trubit protocol suffered a major security breach, resulting in a loss of approximately $26.5 million in ETH.

The incident led to a collapse in the price of generation token TRU, which fell almost 100% within hours.

Smart contract violation

Blockchain security firm PeckshielAlert reported the incident via X, claiming Trubit was the victim of an exploit that drained more than 8,500 ETH of its smart contracts, worth an estimated $26.5 million.

On-chain data shows that the attacker exploited a vulnerability in the smart contract's pricing logic, allowing them to create TRU tokens at no cost. The hacker then repeatedly mined and sold the tokens to the protocol's correlation curve, depleting the ETH reserves in a rapid buy-sell cycle. The stolen funds were transferred to two addresses, 0x2735…cE850a and 0xD12f…031a6.

The exploit had an immediate impact on the TRU token, causing its value to drop by nearly 100% within hours and rendering it worthless on most exchanges.

As of this writing, the DeFi platform has confirmed that it is aware of the security risk and is advising users not to interact with the affected smart contract. Although the team has not released the full autopsy results yet, it said it is in contact with law enforcement and is taking all necessary steps to resolve the issue.

Truebit breach linked to Sparkle Attack.

Interestingly, PeckShield Trubit identified the hacker as the individual responsible for the Sparkle attack two weeks ago. In that episode, the culprit similarly exploited a flaw in the project's smart contract to artificially depreciate tokens, which were then exchanged for approximately 5 ETH. The stolen funds were later transferred through Tornado Cash, a privacy protocol used to hide transaction methods.

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Overall, crypto-related data breaches will reach a record high in 2025, with more than $2.72 billion stolen, according to TRM Labs. The year began on a rocky note in February when North Korean hackers stole $1.5 billion from central exchange Bybit, the largest crypto exploit on record.

That phenomenon set the pace for the rest of the year, as TRM Labs reported an increase in organized and professional hacking activity in the sector. However, the trend decreased towards the end of the year, and according to the latest report, compared to the figure recorded in December, such losses have decreased by more than 60%.