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Terraport Finance Exploited for $2M Barely 10 Days After Launch

AA News - Mandy Williams 2023-04-10 19:30

Terraport Finance, a decentralized finance (DeFi) platform on the Terra Classic network, has lost over $2 million worth of digital assets through an exploit on its liquidity wallet.

According to an announcement from the project’s official Twitter handle on April 10, the Terraport team is still investigating the hack and trying to secure the protocol.

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

Terraport Finance Hack

The wallet hack comes barely ten days after Terraport was launched. The platform was created by the developer group TerraCVita to help rebuild the Terra Luna Classic ecosystem by increasing the Luna Classic (LUNC) burn rate.

Terraport Finance allows users to swap their Terra and UST tokens for LUNC and then burns them. Within the first week after its launch, the platform had already burnt 100 million LUNC tokens, showing its commitment to revitalizing the network after it failed in May.

The breach in Terraport’s liquidity wallet led to the loss of its LUNC and USTC tokens. The total amount lost remains uncertain as the project’s team is yet to release a detailed report on the hack.

Exchanges Asked to Block Stolen Funds

Meanwhile, one Twitter user named Rajia Bibi reached out to Binance’s CEO Changpeng Zhao (CZ) minutes after the hack, requesting that the exchange’s team freeze the funds stolen from Terraport that had gotten to it. The user also called the attention of the crypto trading platform MEXC Global asking for similar actions.

In response, CZ disclosed that the situation would be resolved faster if Bibi went through the appropriate Binance team as he was a “slow middleman.” The CEO eventually revealed that while some stolen funds were deposited at crypto exchanges KuCoin and MEXC, none had found their way to Binance.

Our team reviewed the transactions. Our analysis shows no funds were deposited in Binance. Some of the hacked funds was deposited to MEXC and KuCoin. Not much we can do here.

— CZ 🔶 Binance (@cz_binance) April 10, 2023

The post Terraport Finance Exploited for $2M Barely 10 Days After Launch appeared first on CryptoPotato.