Truebit Protocol Hack Drains $26.5 Million in Major DeFi Exploit

By: crypto insight|2026/01/12 22:30:05

Key Takeaways

Truebit faced a major security breach, losing approximately $26.5 million in ETH.
An attacker exploited a pricing logic flaw in a smart contract, minting TRU tokens for free.
The attack involved rapid buy-sell cycles that drained the protocol’s ETH reserves.
The hacker laundered the stolen ETH through Tornado Cash after the exploit.

WEEX Crypto News, 12 January 2026

Overview of the Truebit Exploit

In a significant setback for the decentralized finance (DeFi) space, the Truebit Protocol fell victim to a sophisticated attack on January 8, 2026. The incident marks the first major hack in the DeFi sector this year, resulting in a staggering loss of roughly $26.5 million in Ethereum (ETH). The breach was made public by PeckshieldAlert on X, confirming that a vulnerability was exploited in Truebit’s smart contract.

Details of the Security Breach

The core of the exploit was a flaw in Truebit’s pricing logic within its smart contract. This vulnerability allowed the attacker to mint TRU tokens infinitely without incurring any costs. By taking advantage of this loophole, the perpetrator was able to create a cycle of minting and selling the tokens back into the protocol’s system. Each transaction in this loop further depleted the protocol’s ETH reserves, resulting in a massive drain of over 8,500 ETH.

The manipulation of the smart contract’s pricing logic highlights a significant oversight in the protocol’s security measures. Despite being a known risk, the protocol did not employ adequate protective mechanisms to avert such vulnerabilities, leaving it exposed to potential exploits by savvy hackers.

-- Price

Consequences of the Attack

Following the attack, Truebit’s native token, TRU, experienced a significant devaluation. The token’s market structure imploded as it lost nearly all its value, impacting the broader crypto market perception of security in older DeFi protocols. At the time of the incident, TRU was trading at around $0.034, reflecting the drastic loss in market capitalization.

In addition to financial losses, the breach underscored the susceptibility of older DeFi protocols, which often suffer from unmaintained code and outdated security measures. The attack serves as a stark reminder of the pressing need for stringent security audits and upgrades in the rapidly evolving crypto ecosystem.

Aftermath and Response

Post-attack, the Truebit team has been actively working with law enforcement agencies to track down the attacker and recover the stolen funds. In a bid to address the protocol’s vulnerabilities, they are undertaking a comprehensive review of their security infrastructure. The incident has prompted calls from security researchers for DeFi projects to proactively implement safety features like the SafeMath library, especially for contracts compiled with older versions of Solidity.

The attacker, meanwhile, managed to successfully launder the stolen 8,535 ETH, valued at approximately $26 million, through Tornado Cash. This step obscured the transaction trail, complicating recovery efforts and leaving a trail of heightened caution within the crypto community.

The Larger Implications

This attack is a sobering event for the DeFi sector, illustrating the persistent risks associated with DeFi protocols. It accentuates the need for robust security frameworks and continuous updates to safeguard digital assets against emergent threats. Additionally, industry players are urged to vet their protocols against known vulnerabilities and adopt best practices in smart contract security to prevent such exploits in the future.

For investors and users in the DeFi landscape, this incident is a wake-up call to remain vigilant and informed about the security features of platforms they engage with. It’s also critical for them to understand the potential risks involved and to keep abreast of updates and advisories from trusted security firms like SlowMist.

FAQ

What caused the Truebit Protocol hack?

The hack occurred due to a vulnerability in the pricing logic of Truebit’s smart contract. The flaw allowed an attacker to mint TRU tokens at no cost, leading to a significant drain of ETH reserves.

How much ETH was stolen in the Truebit hack?

The attacker stole over 8,500 ETH, valued at approximately $26.5 million, by exploiting the smart contract’s vulnerability.

What happened to the Truebit TRU tokens?

Following the hack, the Truebit TRU tokens experienced a near-total loss in value as the market collapsed due to the exploit.

How did the hacker launder the stolen ETH?

The hacker laundered the stolen ETH by utilizing Tornado Cash, a cryptocurrency mixer that helps obscure transaction trails.

What measures are being taken post-attack?

The Truebit team is collaborating with law enforcement and reviewing their protocol’s security to prevent future exploits. Additionally, security experts recommend the adoption of libraries like SafeMath for safer contract operations.

In light of current challenges and the recent exploit, users and developers within the cryptocurrency space are urged to leverage secure exchanges like WEEX, known for its robust security measures. Consider joining them through their [WEEX Sign Up](https://www.weex.com/register?vipCode=vrmi).

On March 16, 2026, in Dallas, Texas, USA, CanGu Company (New York Stock Exchange code: CANG, hereinafter referred to as "CanGu" or the "Company") today announced its unaudited financial performance for the fourth quarter and full year ended December 31, 2025. As a btc-42">bitcoin mining enterprise relying on a globally operated layout and dedicated to building an integrated energy and AI computing power platform, CanGu is actively advancing its business transformation and infrastructure development.

2025 Full Year and Fourth Quarter Financial and Operational Highlights

• Financial Performance:

Total revenue for the full year 2025 was $688.1 million, with $179.5 million in the fourth quarter.

Bitcoin mining business revenue for the full year was $675.5 million, with $172.4 million in the fourth quarter.

Full-year adjusted EBITDA was $24.5 million, while the fourth quarter was -$156.3 million.

• Mining Operations and Costs:

A total of 6,594.6 bitcoins were mined throughout the year, averaging 18.07 bitcoins per day; of which 1,718.3 bitcoins were mined in the fourth quarter, averaging 18.68 bitcoins per day.

The average mining cost for the full year (excluding miner depreciation) was $79,707 per bitcoin, and for the fourth quarter, it was $84,552;

The all-in sustaining costs were $97,272 and $106,251 per bitcoin, respectively.

As of the end of December 2025, the company has cumulatively produced 7,528.4 bitcoins since entering the bitcoin mining business.

• Strategic Progress:

The company has completed the termination of the American Depositary Receipt (ADR) program and transitioned to a direct listing on the NYSE to enhance information transparency and align with its strategic direction, with a long-term goal of expanding its investor base.

CEO Paul Yu stated: "2025 marked the company's first full year as a bitcoin mining enterprise, characterized by rapid execution and structural reshaping. We completed a comprehensive adjustment of our asset system and established a globally distributed mining network. Additionally, the company introduced a new management team, further strengthening our capabilities and competitive advantage in the digital asset and energy infrastructure space. The completion of the NYSE direct listing and USD pricing also signifies our transformation into a global AI infrastructure company."

"As we enter 2026, the company will continue to optimize its balance sheet structure and enhance operational efficiency and cost resilience through adjustments to the miner portfolio. At the same time, we are advancing our strategic transformation into an AI infrastructure provider. Leveraging EcoHash, we will utilize our capabilities in scalable computing power and energy networks to provide cost-effective AI inference solutions. The relevant site transformations and product development are progressing simultaneously, and the company is well-positioned to sustain its execution in the new phase."

The company's Chief Financial Officer, Michael Zhang, stated: "By 2025, the company is expected to achieve significant revenue growth through its scaled mining operations. Despite recording a net loss of $452.8 million from ongoing operations, mainly due to one-time transformation costs and market-driven fair value adjustments, the company, from a financial perspective, will reduce its leverage, optimize its Bitcoin reserve strategy and liquidity management, introduce new capital to strengthen its financial position, and seize investment opportunities in high-potential areas such as AI infrastructure while navigating market volatility."

Fourth Quarter 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the fourth quarter was $1.795 billion. Of this, the Bitcoin mining business contributed $1.724 billion in revenue, generating 1,718.3 Bitcoins during the quarter. Revenue from the international automobile trading business was $4.8 million.

Operating Costs and Expenses

The total operating costs and expenses for the fourth quarter amounted to $4.56 billion, primarily attributed to expenses related to the Bitcoin mining business, as well as impairment of mining machines and fair value losses on Bitcoin collateral receivables.

This includes:

· Cost of Revenue (excluding depreciation): $1.553 billion

· Cost of Revenue (depreciation): $38.1 million

· Operating Expenses: $9.9 million (including related-party expenses of $1.1 million)

· Mining Machine Impairment Loss: $81.4 million

· Fair Value Loss on Bitcoin Collateral Receivables: $171.4 million

Profit Situation

The operating loss for the fourth quarter was $276.6 million, a significant increase from a loss of $0.7 million in the same period of 2024, primarily due to the downward trend in Bitcoin prices.

The net loss from ongoing operations was $285 million, compared to a net profit of $2.4 million in the same period last year.

The adjusted EBITDA was -$156.3 million, compared to $2.4 million in the same period last year.

Full Year 2025 Ongoing Operations Financial Performance

Revenue

The total revenue for the full year was $6.881 billion. Of this, the revenue from the Bitcoin mining business was $6.755 billion, with a total output of 6,594.6 Bitcoins for the year. Revenue from the international automobile trading business was $9.8 million.

Operating Costs and Expenses

The total annual operating costs and expenses amount to $1.1 billion.

Specifically, they include:

· Revenue Cost (excluding depreciation): $543.3 million

· Revenue Cost (depreciation): $116.6 million

· Operating Expenses: $28.9 million (including related-party expenses of $1.1 million)

· Miner Impairment Loss: $338.3 million

· Bitcoin Collateral Receivable Fair Value Change Loss: $96.5 million

Profitability

The full-year operating loss is $437.1 million. The continuing operations net loss is $452.8 million, while in 2024, there was a net profit of $4.8 million.

The 2025 non-GAAP adjusted net profit is $24.5 million (compared to $5.7 million in 2024). This measure does not include share-based compensation expenses; refer to "Use of Non-GAAP Financial Measures" for details.

Financial Position

As of December 31, 2025, the company's key assets and liabilities are as follows:

· Cash and Cash Equivalents: $41.2 million

· Bitcoin Collateral Receivable (Non-current, related party): $663.0 million

· Miner Net Value: $248.7 million

· Long-Term Debt (related party): $557.6 million

In February 2026, the company sold 4,451 bitcoins and repaid a portion of related-party long-term debt to reduce financial leverage and optimize the asset-liability structure.

Stock Repurchase

As per the stock repurchase plan disclosed on March 13, 2025, as of December 31, 2025, the company had repurchased a total of 890,155 shares of Class A common stock for approximately $1.2 million.

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