New York, Wednesday, October 02, 2024 – Blockchain project Truflation, backed by Coinbase Ventures, has been hacked, losing about $5 million in a malware attack, according to blockchain investigator ZachXBT.
The hack targeted both the project’s treasury multisig and personal wallets.
Truflation acknowledged the breach, posting on X (formerly Twitter) that it had detected “abnormal activity” and was investigating the incident with law enforcement.
Staking services have been temporarily suspended, and liquidity on decentralized exchanges (DEXs) is limited as a result of the attack.
In response, Truflation is offering a $500,000 bounty to the hacker for the return of the stolen funds.
CEO Stefan Rust also reassured users in a video statement that no customer funds were compromised. Rust urged the hacker to engage with the team, stating that they would drop legal charges if the majority of the funds were returned.
If the hacker does not respond by September 28, Truflation plans to expand the bounty and offer 10% of the stolen funds to anyone who can help identify the perpetrator.
The company is actively tracking the incident and has offered a $500,000 bounty for the return of stolen funds. Rust also encourages the hacker to come forward and suggests potential collaborations. The stolen funds, totaling approximately $5.5 million, have been traced to a specific Ethereum address.
Despite the hack, Truflation’s core development and upcoming features remain unaffected. The company said it has temporarily paused staking and liquidity on decentralized exchanges.
The stolen assets include $3.89 million in Truflation tokens, $1.07 million in Ether, and $236,000 in DAI stablecoins. As a result, Truflation’s token has dropped by nearly 15%, trading at $0.0735.
