Truflation, a blockchain-based inflation data platform backed by Coinbase Ventures, confirmed a malware attack that resulted in a significant loss of funds. The breach, estimated at around $5.2 million, involved the theft of assets from Truflation’s treasury and personal wallets.

According to a post from the Truflation team on September 25, unusual activity was detected when an attacker used malware to exploit the system. Truflation has since taken action, working with industry experts and law enforcement to protect funds and resolve the issue.

Blockchain analyst ZachXBT estimates the total loss at $5.23 million, with approximately $3.89 million in Truflation’s TRUF tokens, $1.07 million in Ethereum (ETH), and $236,000 in DAI stablecoin stolen. The attack also affected assets on seven other blockchain networks, causing an additional $100,000 in losses. However, customer funds and staking pools remain unaffected.

Truflation is attempting to communicate with the hacker, signaling a willingness to negotiate while offering rewards to white hat hackers who can assist with recovery efforts.

Following news of the breach, TRUF tokens dropped by 15.6%, reaching a low of $0.068 before stabilizing at $0.073, with the platform’s market cap now sitting at $12.8 million, according to CoinGecko.

Launched in December 2021, Truflation provides real-time inflation data and operates a marketplace tracking commodity prices, including sugar, coffee, and petroleum.