Terraport DeFi, a decentralized finance (DeFi) platform on the Terra blockchain, has been hacked, with nearly $1 billion in community-owned funds stolen. The hack occurred on June 28, 2023, following the Cosmwasm V 2.1.0 upgrade.
The attackers managed to steal 15 billion Terra Luna Classic (LUNC), along with 9.4 million Terra Classic USD (USTC) and 9.1 million Terra 2.0 (LUNA).
Unfortunately, a substantial portion of the stolen funds has been irretrievably moved to Tornado Cash, a crypto mixer that has been banned by the US government since late last year.
The Terraport team is working closely with centralized exchanges to thoroughly investigate the remaining stolen funds. Developer CosmoSreXx has been proactive in tracking down part of the funds by contacting one of the exchanges independently.
In an interesting twist, CosmoSreXx has openly criticized Terraport’s team for alleged negligence, suggesting that the movements could have been detected and prevented.
In addition to the ongoing investigation, the Terraport Finance website has been temporarily suspended. The closure is attributed to a security audit conducted by CertiK, a blockchain security team. However, DailyCoin has yet to receive updates on the progress of the security audit from CertiK.
The Terraport hack is a significant setback for the Terra community. The platform was one of the most popular DeFi platforms on the Terra blockchain, and its closure will likely have a negative impact on the overall ecosystem.
Mohammad Ali is a fintech and cryptocurrency writer who has been covering the intersection of finance and technology for several years. Ali has a deep understanding of the financial industry and the ways in which technology is changing it, with a special focus on the rise of digital currencies and blockchain technology.
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