- Terraport security breach resulted in 15 billion LUNC drained.
- The group calls law enforcement to allocate drained funds.
- Terra Luna Classic dropped by 9.2% in the last two weeks.
TerraCVita, a well-known development group behind Terraport DeFi, has started investigating the recent incident, which resulted in nearly $1 billion of community-owned funds getting drained. The spokesperson for Terraport insisted that a “discreet investor” has joined the efforts to trace the funds, while a law enforcement company is already working on the investigation.
As previously reported by DailyCoin, the Terra Luna Classic community suffered a major hack just a couple of days after the Cosmwasm V 2.1.0 upgrade kicked in. The hackers stole 15 billion Terra Luna Classic (LUNC) while also getting away with 9.4 million Terra Classic USD (USTC) & 9.1 million Terra 2.0 (LUNA).
How Much Can Still Be Recovered?
A large chunk of the hacked funds are irreversible. This is due to the fact that hackers managed to siphon the stolen money into Tornado Cash, the infamous crypto mixer, which was banned by the United States government late last year.
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While the siphoned funds sent to Tornado Cash cannot be retrieved, the rest of the stolen funds must be thoroughly checked in cooperation with centralized exchanges, according to developer CosmoSreXx. Additionally, CosmoSreXx openly blames Terraport’s team for negligence regarding the matter.
On the other hand, CosmoSreXx himself had contacted one of the exchanges and managed to track down part of the funds. Shockingly, the developer argues that Terraport’s team “wouldn’t have made it to the BSC network” if the movements were monitored at all.
As if that wasn’t enough Terraport Finance website is now closed due to a “temporary suspension of Terraport services.” According to the maintenance statement, there’s an ongoing security audit being conducted by CertiK. However, the blockchain security team hasn’t responded to DailyCoin about the progress of the security audit.
On The Flipside
- TerraCVita chose to conceal the identity of both the “discreet investor” and the law enforcement company, once again raising suspicion among the embattled Terra Classic community.
Why This Matters
Hacks have been on the rise in crypto since 2022 – analyzing these cases gives a better understanding of how cybercrime can be prevented.
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