- Terra Classic’s DeFi exchange project, Terraport Finance, reported a breach in its liquidity wallet, resulting in the loss of 15 billion LUNC tokens, 9.4 million USTC, and 9.1 million TERRA.
- Binance, MEXC Global, and KuCoin have blacklisted the wallets connected to the hack and frozen the stolen assets found on their platforms.
- The Terra Classic community, led by community member reXx, has collaborated with exchanges to identify and freeze the stolen assets, and investigations are ongoing to demystify the hack.
Terra Classic’s Terraport Liquidity wallet was hacked, resulting in the loss of 15.1 billion LUNC, 9.4 million USTC, and 9.1 million TERRA tokens. CZ, the CEO of Binance, responded to the hack by stating that Binance’s security team had reviewed the transactions and found no stolen funds on the platform. MEXC Global froze millions of LUNC and suspended LUNC deposits on its platform to address the situation. KuCoin also froze assets connected to the hack. ReXx, a Terra Classic community member, worked with exchanges to freeze some of the hacked assets deposited into the exchanges. Investigations identified over 6 billion Terra Classic (LUNC) linked to the exploit, with the assets discovered in five different Terra Classic wallet addresses. The hacker leveraged SimpleSwap to move the funds. Terraport Finance’s platform has been temporarily suspended. The LUNC price is currently trading at $0.000124, down 1% in the last 24 hours.
Please submit a CS case ASAP. We have a SOP for it, it's faster than going through me. I don't know which account/address, etc. And I am a "slow middle man".
— CZ 🔶 Binance (@cz_binance) April 10, 2023
Terraport’s hack
Terra Classic’s Terraport Liquidity wallet was hacked, resulting in the loss of 15.1 billion LUNC, 9.4 million USTC, and 9.1 million TERRA tokens. The hack was discovered by the Terraport team, who then asked Binance and MEXC Global to freeze the crypto assets immediately as tokens worth millions transferred to these exchanges. ReXx, a Terra Classic community member, worked with exchanges to freeze some of the hacked assets deposited into the exchanges. Investigations identified over 6 billion Terra Classic (LUNC) linked to the exploit, with the assets discovered in five different Terra Classic wallet addresses.
Binance CEO’s response
CZ, the CEO of Binance, responded to the hack by stating that Binance’s security team had reviewed the transactions and found no stolen funds on the platform. CZ also asked that the appropriate parties submit a customer service case as soon as possible, as going through him would make the process slower. Some of the hacked funds were deposited to MEXC and KuCoin.
Our team reviewed the transactions. Our analysis shows no funds were deposited in Binance. Some of the hacked funds was deposited to MEXC and KuCoin. Not much we can do here.
— CZ 🔶 Binance (@cz_binance) April 10, 2023
MEXC Global’s response
MEXC Global froze millions of LUNC and suspended LUNC deposits on its platform to address the situation. The MEXC Global team noted that it was working collaboratively with Binance to ensure that the hacked funds were frozen. ReXx noted that MEXC had frozen $124K+ worth of the assets and an additional 600 million LUNC in pending deposits.
The MEXC team has been working with Binance in the shortest possible time to freeze illicit assets.
— MEXC Global (@MEXC_Global) April 10, 2023
MEXC has always acted fast in fighting evil. We have long cooperated with other exchanges to jointly fight against illegal behaviors and promote the sound development of the… https://t.co/VLTBBrkskR
KuCoin’s response
KuCoin also froze assets connected to the hack. Johnny Lyu, the CEO of KuCoin, stated that KuCoin is currently protecting users’ assets and would continue to pay attention to the development. ReXx had earlier disclosed that he was directly communicating with the KuCoin team. Once they identify the transactions, they would freeze some of the assets deposited to the platform.
KuCoin team has been taking actions to protect the users and will continue to keep a high attention on it.
— Johnny_KuCoin (@lyu_johnny) April 10, 2023
Investigations and SimpleSwap
Investigations identified over 6 billion Terra Classic (LUNC) linked to the exploit, with the assets discovered in five different Terra Classic wallet addresses. The hacker leveraged SimpleSwap to move the funds. ReXx noted that the SimpleSwap team is working collaboratively with other exchanges to ensure the funds are identified and frozen. ReXx further revealed that he discovered 3 wallets within the Terraport code that executed the hack – a finding which raised questions. He noted that the discovery was found in an encrypted section, and he still needs the source code to know what led to the hack.
Here is the current balance sent to MEXC exchange that is now FROZEN.
— reXxâ„¢ (@CosmoSreXx) April 10, 2023
I am working with the remaining exchanges to freeze the other transactions. pic.twitter.com/pRfJdOybYN
Terraport Finance’s platform suspension
Terraport Finance’s platform has been temporarily suspended. Terraport is developed by the developer group TerraCVita to revive TTerra Luna Classic network and increase the LUNC burn rate. The platform received $2 million in funding in January, showing a commitment to revive the Terra Classic network and support LUNC burn. The team successfully burned 100 million LUNC tokens in the debut week.
Terraport Finance’s platform was launched with the aim of becoming the most promising DeFi exchange on the Terra Luna Classic network. However, the hack has dealt a severe blow to its credibility and the Terra Luna Classic network’s reputation.
The hack has also raised concerns about the security of DeFi projects, which are becoming increasingly popular in the cryptocurrency industry. Many DeFi projects are built on smart contracts, which are computer programs that execute financial transactions automatically. However, smart contracts are only as secure as the code they are built on, and hackers can exploit vulnerabilities in the code to carry out attacks.
In response to the hack, the Terra Luna Classic community and influencers have called for more audits and security measures to be put in place for DeFi projects. They have also emphasized the importance of community-driven projects that prioritize transparency and accountability.
The aftermath of the Terraport hack has highlighted the need for better security practices in the cryptocurrency industry. The rise of DeFi projects has brought new opportunities for investors, but it has also created new risks. As the industry continues to evolve, it is crucial for developers and investors to prioritize security and adopt best practices to prevent future attacks.
The Terraport hack is a stark reminder of the risks associated with DeFi projects and the need for better security practices in the cryptocurrency industry. While the hack has caused significant damage to the Terra Luna Classic network’s reputation, it has also highlighted the importance of transparency and accountability in community-driven projects. As the industry continues to evolve, it is crucial for developers and investors to work together to prioritize security and prevent future attacks.
Thanks for reading Solanews , remember to follow our social media channels for more