Truflation Reports Malware Attack with Estimated Loss of $4.6 Million

Truflation Reports Malware Attack with Estimated Loss of $4.6 Million

Truflation, a blockchain project backed by Coinbase Ventures, announced on Wednesday that it experienced a malware attack, resulting in significant financial losses. The incident was detected on September 25, 2024, when the Truflation team identified unusual activity within their systems.

In a statement on X, Truflation confirmed that they are actively investigating the breach and cooperating with law enforcement to safeguard their funds. The team emphasized that they are working diligently with industry experts to recover lost assets and understand the full scope of the attack.

According to blockchain security firm Cyvers, the attackers compromised Truflation's safe address, leading to an estimated loss of $4.6 million in TRUF tokens. Blockchain investigator ZachXBT also reported that the total losses could be around $5 million, indicating that funds were drained from both treasury multisig wallets and personal accounts.

In response to the attack, Truflation suspended its staking services to protect assets and announced a reward for any white-hat hackers who assist in the investigation or recovery efforts. The platform reassured users that customer funds remain secure, clarifying in a chat that no user assets were compromised.

Truflation's CEO, Stefan Rust, explained that the malware likely entered their systems during the recent Token2049 event in Singapore, allowing the attackers access to treasury funds. He reiterated the commitment to transparency throughout the investigation, assuring the community that no customer funds are at risk.

The attack has also impacted Rust personally, as he reported that his account was hacked. He cautioned users about potential scammers impersonating Truflation team members to solicit TRUF tokens. Despite these challenges, Rust expressed enthusiasm for upcoming announcements from the project, underscoring his commitment to moving forward.