Ethereum

2024

Security

Security breaches continue to plague the cryptocurrency world, and the latest victim is Truflation, an altcoin project backed by Coinbase Ventures. According to blockchain researcher ZachXBT, over $5 million has been stolen from Truflation’s treasury and personal wallets, making this attack a significant event in the crypto community. 
<h2 id="details-of-the-attack-on-truflation">Details of the Attack on Truflation</h2> 
ZachXBT, known as a “blockchain detective,” revealed that around $5.23 million worth of cryptocurrency was stolen from Truflation’s treasury and multi-signature wallets on the Ethereum network. In addition to this, transactions were carried out across seven different blockchain networks, with approximately $100,000 reported lost. This attack has shaken the crypto community, raising concerns over the security measures within even well-supported projects. 
<blockquote class="twitter-tweet"> 
 On September 25th, 2024, the Truflation team detected some abnormal activity. An attacker launched an attack using malware. 
 We are currently monitoring the situation and are taking measures to protect funds while we are investigating and working with law enforcement. The… 
 — Truflation (@truflation) <a href="https://twitter.com/truflation/status/1839043719124889963?ref_src=twsrc%5Etfw" rel="nofollow noopener" target="_blank">September 25, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
According to ZachXBT, the hackers stole around $3.89 million worth of Truflation’s native token TRUF, $1.07 million in <a href="https://thebitjournal.com/crypto-market-news-bitcoin-could-hit-250000-by-2030-ethereum-altcoin-set-to-create-millionaires-by-2025/" target="_blank" rel="noopener">Ethereum</a> (ETH), and $236,000 in Dai (DAI). The loss significantly impacts Truflation’s total assets, affecting its financial stability. 
<h2 id="official-response-from-the-project">Official Response from the Project</h2> 
Following the attack, the Truflation team released an official statement confirming the breach and acknowledging it as a malicious malware attack. The team stated that they are working with law enforcement to recover the stolen funds and have already begun efforts to secure their remaining assets. Importantly, Truflation assured users that their personal funds were not affected by the breach. Additionally, staking funds were reported safe, providing some reassurance to their community. 
<img loading="lazy" loading="lazy" decoding="async" class="alignnone size-full wp-image-46728" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/09/article-about-a-cryptocurrency-hack-specifically-focusing-on-the-Truflation-hack.-The-design-should-include-abst.webp" alt="Hack Attack on Coinbase-Backed Project: Altcoin Takes a Hit! = The Bit Journal" width="1792" height="1024" title="Hack Attack on Coinbase-Backed Project: Altcoin Takes a Hit! 20"> 
<h2 id="staking-paused-and-liquidity-concerns">Staking Paused and Liquidity Concerns</h2> 
In their statement, Truflation also revealed that staking operations have been temporarily paused following the attack. The team mentioned that liquidity on decentralized exchanges (DEXs) is now limited, which could lead to short-term liquidity challenges for the project. 
<h2 id="altcoin-price-drop">Altcoin Price Drop</h2> 
Immediately after news of the hack broke, the price of Truflation’s native token TRUF plummeted. Initially, the token fell by 15%, dropping to $0.068. Although there was a slight recovery, TRUF was still trading at a 9% loss, priced at $0.078 at the time of writing. The market’s reaction will largely depend on how the Truflation team responds to this incident in the coming days.<img loading="lazy" loading="lazy" decoding="async" class="alignnone size-full wp-image-46730" src="https://thebitjournal.b-cdn.net/wp-content/uploads/2024/09/TRUF_1D_graph_coinmarketcap.jpeg" alt="Hack Attack on Coinbase-Backed Project: Altcoin Takes a Hit! = The Bit Journal" width="1200" height="800" title="Hack Attack on Coinbase-Backed Project: Altcoin Takes a Hit! 21"> 
This hack has once again highlighted the vulnerability of the crypto markets to security breaches. Even projects backed by major investors are not immune, and such incidents can severely undermine market confidence. How long TRUF’s price will remain affected and how investors react remains to be seen. 
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Hack Attack on Coinbase-Backed Project: Altcoin Takes a Hit!

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