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Terra DeFi project Terraport suffers $2M hack days after launch

  • April 10, 2023
  • Posted by: admin
  • Category: BitCoin, Blockchain, Cryptocurrency, Investments
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Terra users are losing another round of funds due to a breach on the new DeFi platform Terraport Finance, which launched on March 31.

The algorithmic stablecoin TerraUSD (UST) collapsed almost one year ago, but some Terra-related projects are still live and trying to overcome some issues.

Terraport Finance, a decentralized finance (DeFi) exchange project based on the Terra Classic blockchain, suffered a breach on its liquidity wallet on April 10. Announcing the news on Twitter, Terraport said the hacker had drained all liquidity pools from the platform, causing losses of about $2 million worth of digital assets.

“We are currently working with community members and major exchanges to secure as many of these funds as possible and blacklist wallets. All funds have been tracked,” Terraport stated.

According to social media reports, the Terraport hacker has allegedly transferred the stolen funds to exchanges like Binance and MEXC Global. The investigators have urged the exchange’s security teams to freeze the assets as soon as possible.

While Terraport has been investigating the security issue and preparing an incident report, many online crypto enthusiasts have stood up to criticize the rushed launch of Terraport.

Following a token sale in February and March 2023, ​​TerraCVita launched its LUNC (LUNC)-based decentralized exchange Terraport on March 31. By April 7, Terraport burnt nearly 100 million LUNC tokens in an attempt to revitalize Terra after it failed one year ago.

“What was for that hurry to launch to have two months presale?” one commentator called out on Twitter, stating that the answer to this question is the key to understanding the project’s driving force.

Some industry observers also alleged that Terraport went live without completing an audit, which triggered more complications.

The crypto community has also expressed outrage against influencers that have been involved in promoting Terraport before it suffered an exploit.

Related: DeFi exploits and access control hacks cost crypto investors billions in 2022: Report

According to LUNC enthusiast Levi Rietveld, some influencers like ClassyCrypto removed their LUNC-related promoting content soon after the platform was hacked. “Things are extremely fishy and its likely someone on the Terraport team rugged,” Rietveld stated.

Emerged largely in 2021, the DeFi industry continues to struggle in terms of security and infrastructure vulnerabilities, with new DeFi incidents coming up almost each day. One of the latest such incidents happened on April 8, with DeFi protocol SushiSwap losing more than $3 million due to a bug on the smart contract that aggregates trade liquidity.

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