Blockchain-based inflation data platform Truflation has confirmed it was the target of a malware attack, leading to the loss of an estimated $5.2 million. The project, backed by prominent players like Coinbase Ventures and Chainlink, reassured users that no customer funds were compromised in the breach.
Details of the Attack
In a Sept. 25 post on X (formerly Twitter), Truflation reported detecting unusual activity within its system, confirming that an attacker exploited malware to breach their security. According to blockchain investigator ZachXBT, approximately $5.23 million was stolen from Truflation’s treasury multisignature wallets and personal wallets on Ethereum. Smaller losses totaling $100,000 were reported across seven other blockchains.
A separate analysis conducted by blockchain security firm Cyvers estimated the total loss at $4.95 million. The breakdown of stolen assets includes $3.89 million in Truflation’s native token (TRUF), $1.07 million in Ether (ETH), and $236,000 in stablecoins, all from the team’s Ethereum wallets.
Despite the hack, Truflation confirmed that staking funds were unaffected and reiterated that no customer funds were involved in the attack. The team is actively working with industry partners, law enforcement, and blockchain experts to investigate the breach and recover the stolen funds. Truflation has also expressed a willingness to negotiate with the hacker and is offering rewards to white-hat hackers who provide assistance.
Market Reaction and Impact
Following the news, Truflation’s native token, TRUF, experienced a sharp drop. Within 90 minutes of the X post, the token’s value plunged 15.6%, falling to $0.068, according to CoinGecko. However, it quickly rebounded, recovering to $0.073. The token’s market cap currently sits at $12.8 million.
What Is Truflation?
Truflation is a blockchain-based platform that provides real-time economic and inflation data. Launched in December 2021, the project seeks to deliver more accurate and transparent financial data using decentralized technologies. About ten months after its launch, Truflation expanded its offerings by introducing a data marketplace that tracks various commodity indexes, including sugar, cocoa, coffee, petroleum, cattle, and wheat.
The platform has gained significant traction in the blockchain space, with backing from major investors like Coinbase Ventures and Chainlink. Despite the recent hack, Truflation remains committed to ensuring the security of its platform and protecting user data.
