Blockchain investigator ZachXBT has revealed that Coinbase Ventures-backed crypto project Truflation has lost around $5 million in a hack. The amount was drained from “treasury multisig and personal wallets.” After confirming the hack, the project is offering a $500,000 bounty to hacker.
ZachXBT first posted about the hack on Telegram channel and noted, “The project Truflation was hacked a few hours ago for $5M+ on multiple chains from the treasury multisig and personal wallets.”
Later, Truflation confirmed on X that it had detected some abnormal activity and had suffered a malware attack. “We are currently monitoring the situation and are taking measures to protect funds while we are investigating and working with law enforcement,” the project shared.
NO CUSTOMER FUNDS AT RISK: Truflation Hack Update #2
CEO Stefan Rust has the latest update as of 8pm EST. pic.twitter.com/ocgJM1hqSL
— Truflation (@truflation) September 25, 2024
In a X video, CEO Stefan Rust also reassured users that no customers’ funds are at risk, as the team is tracking down the issue. Rust also has urged the hacker to reach out to the team and has offered bounty, as he said that the team is also open to taking white hat hacking suggestions.
In a statement sent to CryptonewsZ on 27 Sept, Rust informed us, that $500,000 bounty (or reward) for the return of the stolen funds is being offered. The hacker can keep if they return the remaining 90%. If the hackers return the funds, Truflation will also drop charges and there will be no risk of law enforcement issues.
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But, if the hacker does not partake in the voluntary return and complete the process by September 28th at 0800 UTC, Truflation will expand the bounty to the public, and offer the full 10% to the person who is able to identify the hacker in a way that leads to a conviction in the courts. The attacker will be hunted down from all angles within the ‘full extent of the law’, read the statement.
Thanking the community for the support and time, Rust commented “While this incident is regrettable, it does not impact Truflation’s ongoing development or our ability to roll out forthcoming features, including new indices, the mainnet launch, and the Truflation Stream Network. ”
Truflation also informed users that staking is unavailable at this time and there is limited liquidity on DEXs. The team has also sourced all the stolen funds (~$5.5M) located on this address: 0xb1cf7880351e6d16313c03a6686b4c8a5ba6372a.
Web3 security firm Cyvers also monitored the attack and found that Truflation lost $4.95 million including $3.89 million in Truflation (TRUF), $1.07M in Ether ETH and $236,000 in the DAI stablecoin was stolen from the team’s Ethereum wallets. Post the attack, Truflation’s token , TRUF has gone down by 14.78% and is currently trading at $0.0735.
Note: The report has been updated on 27 September after including a comprehensive statement about the hack from the Truflation team.
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