Blockchain project Truflation, supported by Coinbase Ventures, is currently grappling with the aftermath of a recent malware attack, with funds compromised but the exact amount undisclosed. The team detected unusual activity on September 25th, prompting immediate action to safeguard assets and collaborate with law enforcement while conducting a thorough investigation.
The attack targeted Truflation's safe address, resulting in a loss of approximately $4.6 million in TRUF tokens, according to web3 security firm Cyvers. Additionally, blockchain investigator ZachXBT revealed that the project faced a total loss of around $5 million as hackers accessed treasury multisig and personal wallets, draining significant amounts of TRUF, ETH, DAI, and other tokens.
No Customer Funds Compromised: Truflation
Despite the security breach, Truflation reiterated that no customer funds were compromised during the hack. CEO Stefan Rust provided reassurance in a chat session, emphasizing ongoing active investigations to prevent further breaches and ensure the safety of user assets.
Rust shed light on the malware injection incident, likely occurring during Token2049 in Singapore, which enabled unauthorized access to treasury funds. He emphasized the platform's commitment to transparency and collaboration with cybersecurity experts to track down the perpetrators and recover the stolen assets.
As part of its response to the attack, Truflation temporarily suspended its staking services as a precautionary measure while offering rewards to white-hat hackers contributing to the investigation and recovery efforts. The project aims to maintain operational continuity and development progress despite the security incident, with upcoming plans for new indices, mainnet launch, and the Truflation Stream Network.
Moreover, Truflation announced a $500,000 bounty for the return of the stolen funds, contingent on the hackers' voluntary surrender of the remaining 90% by a specified deadline. In the event of non-compliance, the bounty will be extended to the public, with the full 10% reward allocated to individuals providing actionable information leading to the identification and conviction of the culprits.
