The TerraUSD (UST) algorithmic stablecoin crashed almost a year ago, but some Terra-related projects are still alive and trying to overcome some problems.
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Terraport Finance, a decentralized finance (DeFi) exchange project based on the Terra Classic blockchain, suffered a breach in its liquidity wallet on April 10. Announcing the news on Twitter, Terraport said the hacker had drained all of the platform’s liquidity pools, 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 the wallets. All funds have been tracked,” Terraport stated.
According to social media reports, the Terraport hacker would have transferred the stolen funds to the Binance and MEXC Global exchanges. Researchers have urged exchange security teams to freeze assets as soon as possible.
Dear @cz_binance, can you stop funding for the @_Terraport_ hack? $2 million has been depleted and the funds have been transferred to @binance and @MEXC_Global. It is important that the security team freeze the assets immediately.
While Terraport has been investigating the security issue and preparing an incident report, many online cryptocurrency enthusiasts have risen up to criticize Terraport’s hasty launch.
Following a token sale in February and March 2023, TerraCVita launched its Terra Classic-based decentralized exchange, Terraport, on March 31. By April 7, Terraport had burned nearly 100 million Luna Classic (LUNC) tokens in an attempt to revitalize Terra after its failure a year ago.
“Why so much rush in the launch to have two months of pre-sale?” cried a commenter on Twitter, stating that the answer to this question is the key to understanding the engine of the project.
Some industry observers also alleged that Terraport went live without completing an audit, triggering further complications.
The cryptocurrency community has also expressed outrage against influencers who have been involved in promoting Terraport before it was exploited.
According to LUNC enthusiast Levi Rietveld, some influencers like ClassyCrypto removed their LUNC-related promotional content shortly after the platform was hacked. “Things are extremely suspicious and it is likely that someone from the Terraport team slipped away,” Rietveld said.
$TERRA liquidity completely depleted.
Classy lied to the $LUNC community about receiving compensation.
Sold 2 days ago. I am so sorry to anyone who has been negatively affected.
Things are extremely suspicious, and someone on Terraport’s team is likely resistant.
Largely born in 2021, the DeFi industry continues to struggle in terms of security and infrastructure vulnerabilities, with new DeFi incidents surfacing almost every day. One of the latest such incidents occurred on April 8, when the DeFi protocol SushiSwap lost over $3 million due to a bug in the smart contract adding trading liquidity.