On April 10, Terraport’s liquidity pool was hacked. Funds over $2 million were taken due to a breach detected in the Terraport Liquidity wallet. Terraport Finance is a DeFi platform that operates on the Terra Classic network. The team is currently looking into the issue and attempting to protect the protocol, according to the project’s official Twitter handle, which reported the attack.
The on-chain data reveals that the hacker wiped out Terraport’s funds in two transactions. In all, 9.7 million of Terraport’s native token TERRA, 15 billion LUNC, and 5.5 million of the algorithmic stablecoin USTC were withdrawn in the two transactions. The team had tracked the stolen cash and was working with key exchanges to freeze assets related to the hacker’s address, according to the update.
“We are working with the community members and significant crypto exchanges to secure as many funds as possible and blocklist wallets. All the funds have already been tracked.”
Terraport became operational on the Luna Classic blockchain on March 31. It is the same network that housed LUNA and the algorithmic stablecoin USDT. Terra Classic’s native token, LUNC, has been rebranded and is worth $0.000125 at the time of writing.
TerraCVita, a development organization, developed the DeFi platform to strengthen the Terra Luna Classic ecosystem by raising the burn rate of LUNC, the network’s native token. The firm burned 100 million LUNC tokens in the first week following its introduction, by April 7, signalling its dedication to revitalising the network after its failure.
Within minutes following the occurrence, a Twitter user called Rajia Bibi contacted Binance CEO Changpeng Zhao (CZ), demanding that Binance freeze any money that was taken from Terraport that may have been put on its platform. Zhao stated that no stolen assets were put on the exchange, although the company’s own team of investigators discovered transfers on MEXC and KuCoin.
Some members of the cryptocurrency community suspect the attack was carried out by someone on the Terraport team. A wallet active in the Terraport launch made a series of questionable adjustments a few hours before the DEX was emptied of all tokens, according to blockchain data analysed by “0xEars.” Changes were made to the code of three major smart contracts relating to liquidity provision functions on each of the DEX’s trading pairings by the Terraport developer wallet. The protocol’s liquidity had been depleted five hours later.
Attacks on DeFi platforms are becoming increasingly common. Major firms like Euler, Platypus and Dexible have seen attacks recently. This has increased the demand for stricter rules and regulations for the crypto industry. According to DefiLlama, more than $20 million has been taken from the DeFi market since the beginning of the year.
