LUNC Community Investigates: How Tornado Cash Swallowed Funds

Stolen LUNC funds were traced back to Tornado Cash as Terraport gets called out for negligence.

Terraport portal moving out to the real world.
Created by Kornelija Poderskytė from DailyCoin
  • Terra Luna Classic community investigates a massive rugpull.
  • The hacking incident happened days after Terra’s parity upgrade.
  • Terra Luna Classic (LUNC) dipped sharply in the last 24 hours.

One well-known Terra Classic community member called out the Terraport team for neglecting suspicious transactions on the network, which resulted in $88,000 being sent to Tornado Cash without any possibility of retrieval.

According to the pulled transaction history shared by CosmoSreXx, $88,649 of Binance USD (BUSD) was sent off to various wallets in the MEXC Global exchange. These siphoned funds were channeled to the notorious mixer Tornado Cash, an open-source software with an ongoing ban in the United States.

To get these crypto assets into Tornado Cash, the culprits had to swap the Binance USD (BUSD) into BNB tokens before sending it to the crypto mixer. The user who made the story public blames Terraport. According to Crypto Twitter, Terraport is a prominent DeFi platform on the Terra Classic network, which employs around 20 people.

Embattled Community Searching for Right Decisions

The struggling LUNC community has made several attempts to repeg the malfunctioned stablecoin USTC and the Terra Classic parity upgrade, making $LUNC compatible with Terra 2.0 and all other Cosmos-based blockchains.

CosmoSreXx complained that the Terraport team had missed the red signs and shouldn’t have allowed the stolen cryptocurrency to leave the Terra Classic network.

In response to these accusations, a Terraport spokesperson explained, “Each CEX has their own policies and procedures and just like the Terra Classic validators, some are more and some are less likely to cooperate in attempts to defeat thieves.”

On the Flipside

  • Terraport developers claim a code to return half of the funds to the liquidity pool was created, but the Terra Luna community rejected the proposal.

Why This Matters

Terra Luna Classic has a large community of crypto enthusiasts across different social platforms.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.