Trust No One: Trusta AI Smart Contract Exploit Triggers TA Token Collapse Just Days After Launch

Another day, another DeFi disaster—Trusta AI's freshly minted TA token nosedives after attackers exploit a vulnerability in its smart contract.

Code cracks, confidence crumbles

The breach exposed critical flaws in the project's audit process, sending TA's value into freefall. Investors who piled in during the token's hyped launch watched gains evaporate faster than a memecoin's utility.

Deja vu in DeFi

Yet another 'trustless' system proves you absolutely need trust—just ask the bagholders left with worthless TA tokens. The exploit follows a familiar script: rushed launch, overlooked vulnerabilities, and exit liquidity provided by retail traders.

Smart contracts? Smarter hackers.

As the crypto casino keeps spinning, one rule remains constant: the house always wins. Unless you're the house getting hacked, of course.

Trusta AI attacked by rogue smart contract

According to Certik, the attacker created two smart contracts that spoofed Trusta AI trading, making users pay exorbitant fees. The attackers then traded TA on legitimate liquidity pools. The rogue contract was generated two days ago and credited with only 0.3 BNB. 

As a result, TA sank to $0.09, down from an initial price of $0.17. The token is still in early price discovery, and it remains uncertain how much of the selling was due to the exploit, and what part was the selling that originated from early TGE token recipients. 

Trusta AI was just launched as part of the Binance Alpha program for selected tokens, meaning most of the affected users were small-scale holders with self-custodial wallets. 

Token recipients pre-approved the contract, allowing it to spend TA

The main problem with the Trusta AI exploit was the pre-approved access of the contract. As a result, tokens were taken from self-custodial wallets, which WOULD otherwise hold TA safely. 

Apparently, TA recipients had pre-approved the contract address. The exploit also affected WBNB tokens, selling via malicious liquidity pools at unfair rates. 

As a result of the rogue trading, Trusta AI had different price ranges in its various versions. TA on Base still traded at $0.14, while on BNB Smart Chain the asset retained its lower level of $0.09. The initial attack account then simply withdrew the allowed tokens. 

One of the exploit wallets currently carries over 408 WBNB, among other smaller token holdings. 

The affected wallets also pre-approved specific tokens; thus, not all assets were affected. Pre-approved tokens are a common feature for BNB Chain, allowing for faster token swaps or lending. Unvetted permissions to smart contracts for automated trading may quickly turn risky.

BNB Chain and Trusta AI remain safe, as well as the TA tokens. Soon after the attack, some of the TA pairs recovered, pushing the token as high as $0.23. For now, there is no mention of freezing the tokens or attempting to revert the transactions. 

Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites