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Terra DeFi project Terraport Finance hacked: $2 million worth of digital assets stolen

TL;DR

  • The Terraport Finance platform has been hit with a major security breach, resulting in losses totaling over $2 million worth of digital assets.
  • In an official statement released via Twitter on April 10, the Terraport team indicated they are actively investigating the exploit and doing their best to secure the protocol.

The Terraport Finance platform, a decentralized finance (DeFi) initiative running on the Terra Classic blockchain, has been hit with a major security breach, resulting in losses totaling over $2 million worth of digital assets. In an official statement released via Twitter on April 10, the Terraport team indicated they are actively investigating the exploit and doing their best to secure the protocol.

Terraport Finance hack

The Terraport Finance platform hack came barely ten days after it was launched. Developed by TerraCVita, the platform is intended to help rebuild the Terra Luna Classic ecosystem by increasing its LUNC token burn rate. In its first week alone, it had already burned an impressive 100 million LUNC tokens— a promising sign of the platform’s commitment to reviving the network after its failure in May. However, this significant progress has now been overshadowed by the wallet hack.

However, the security breach of the platform’s liquidity wallet resulted in the loss of its LUNC and USTC tokens. The total amount of funds lost because of the hack still remains unknown as the platform hasn’t released a detailed report on the hack.

Terraport Finance hack sparks reactions from the crypto community

Terraport Finance has faced criticism from the crypto community over its rushed launch and failure to conduct an audit. As questions about the project’s driving force arise, industry observers allege that Terraport went live without completing an audit, adding to its complications. Twitter users have also called out influencers who promoted the platform before the exploit, causing outrage in the crypto community.

“Why the hurry to launch with a two-month presale?” one commentator asked on Twitter, highlighting the significance of understanding Terraport’s motivations.

Levi Rietveld, a supporter of LUNC, has accused influencers such as ClassyCrypto of removing their promotional content related to the platform soon after it was hacked. Rietveld has expressed suspicion over the situation, stating that “things are extremely fishy” and that it is likely someone on the Terraport team was involved in the security breach.

Following the security breach of the decentralized finance (DeFi) exchange Terraport Finance, Twitter user Rajia Bibi reached out to Binance CEO Changpeng Zhao (CZ) requesting that the exchange freeze funds stolen from Terraport that had been transferred to it. Bibi also called on the attention of the crypto trading platform MEXC Global to take similar actions.

In response, CZ advised Bibi that the situation would be resolved more quickly if she went through the appropriate Binance team, as he was a “slow middleman.” CZ later disclosed that some of the stolen funds had been deposited at crypto exchanges KuCoin and MEXC, but none had been received by Binance.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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