On April 10, Terraport Finance, a new DeFi exchange platform based on the Terra Classic blockchain, suffered a breach of its liquidity wallet.
This then resulted in the loss of approximately $2 million worth of digital assets. The hacker allegedly transferred the stolen funds to exchanges like Binance and MEXC Global, prompting Terraport to work with community members and major exchanges to secure as many funds as possible and blacklist wallets.
The incident has sparked criticism from the online crypto community, with many calling out Terraport for its rushed launch and lack of audit completion. The crypto industry continues to struggle with security and infrastructure vulnerabilities, with new DeFi incidents occurring almost daily.
The Terraport incident comes after the collapse of the algorithmic stablecoin TerraUSD (UST) almost a year ago.
Despite this, some Terra-related projects are still operational, attempting to overcome various issues. Terraport’s incident has further added to the security issues faced by DeFi platforms, with new incidents popping up almost daily.
According to social media reports, the hacker had allegedly transferred the stolen funds to exchanges like Binance and MEXC Global. Security teams at these exchanges were urged to freeze the assets as soon as possible. Terraport has been investigating the security issue and preparing an incident report.
Many online crypto enthusiasts have criticized Terraport for its rushed launch following a token sale in February and March 2023.
TerraCVita launched its LUNC-based decentralized exchange Terraport on March 31, and by April 7, Terraport burnt nearly 100 million LUNC tokens in an attempt to revitalize Terra after it failed one year ago.
Critics have raised questions about the hurry to launch and the need for a two-month presale, which they believe is key to understanding the project’s driving force.
Industry observers have alleged that Terraport went live without completing an audit, which may have triggered more complications.
The crypto community has also expressed outrage against influencers who promoted Terraport before the exploit occurred. LUNC enthusiast Levi Rietveld alleged that some influencers like ClassyCrypto removed their LUNC-related promoting content soon after the platform was hacked.
He added that things were extremely fishy and it was likely that someone on the Terraport team was responsible.
The DeFi industry continues to struggle with security and infrastructure vulnerabilities, with new DeFi incidents coming up almost daily. One of the latest incidents occurred on April 8, with DeFi protocol SushiSwap losing more than $3 million due to a bug on the smart contract that aggregates trade liquidity. DeFi platforms must prioritize security measures to prevent incidents like this from recurring in the future.
Terraport Hack
In Summary the Terraport Finance DeFi platform suffered a breach on April 10, resulting in the loss of approximately $2 million worth of digital assets.
The incident has highlighted the ongoing security issues faced by DeFi platforms, with new incidents occurring almost daily. The rushed launch of Terraport and the lack of audit completion have drawn criticism from the crypto community, with some influencers also being called out for promoting the project before the exploit occurred.
The DeFi industry must prioritize security measures to prevent incidents like this from recurring in the future