Terraport Finance, the DeFi protocol on the Terra Classic network, has been hacked for $2 million ten days after its official launch.
Announcement:
A breach was detected in the Terraport Liquidity wallet this morning. The Terraport team is currently investigating this breach and efforts have been made to secure the protocol. Further official press release will be released later. We appreciate the understanding…
— Terraport Finance (@_Terraport_) April 10, 2023
The developers reported that the attacker exploited a vulnerability in the liquidity wallet. The project team is currently investigating the incident.
According to on-chain data, Terraport lost about 9.7 million TERRA, 15.1 million LUNC and 5.5 million USTC.
Terraport just got hacked/rugged
sad news for all $TERRA holders who just lost everything in a split second
Hopefully now you understand why I advised caution and said it should have been audited
All gone funds:https://t.co/0RcAvbQsm7https://t.co/bRLVclcIt5
— Crypto Susanna (@LUNCDAO) April 10, 2023
On March 31, the TerraCVita development team launched Terraport Finance. The protocol allows users to exchange LUNA and USTC tokens for LUNC and then burn them. In the first week of the project’s existence, more than 100 million coins were destroyed in total.
One Twitter user asked Binance CEO Changpeng Zhao to freeze the stolen funds.
The head of the exchange advised to write directly to the security service, but later said that Terraport funds did not arrive on the platform. According to him, the assets were sent to the MEXC Global and KuCoin exchanges.
Our team reviewed the transactions. Our analysis shows no funds were deposited in Binance. Some of the hacked funds were deposited to MEXC and KuCoin. Not much we can do here.
— CZ 🔶 Binance (@cz_binance) April 10, 2023
MEXC has already frozen deposits in LUNC. The developers of the project turned to other exchanges, which could receive the stolen assets.
In April, CertiK analysts reported that in the first quarter of 2023, blockchain projects lost more than $320 million as a result of hacks and fraud.
Source: Cryptocurrency
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