According to recent reports, Terraport, a decentralized finance (DeFi) protocol, has allegedly suffered a major security breach resulting in the theft of nearly 15 billion LUNC tokens. Data from Terra Finder suggests that almost $4 million worth of Terra Classic (LUNC), TerraClassicUSD (USTC), and TERRA has been drained.
LUNC DAO, a prominent Terra Classic validator, first called attention to the unfortunate development today, sharing two transactions suggesting that the protocol had drained all its liquidity in LUNC, USTC, and TERRA.
Read Also: The Potential Of Cryptocurrency For Financial Inclusion
Terraport just got hacked / rugged
Sad news for all $TERRA holders who just lost everything in a split second
Hopefully now you understand why I advised caution and said it should have been audited
All funds gone:https://t.co/0RcAvbQsm7https://t.co/bRLVclcIt5
— Crypto Susanna (@LUNCDAO) April 10, 2023
Terraport Hacks
The first transaction shows the withdrawal of 9,148,426 (9.1 million) TERRA valued at an estimated $1.8 million against prevailing rates and 15,100,861,997 (15.1 billion) LUNC tokens worth $1.88 million. All these funds were withdrawn from the protocol’s liquidity today at 03:13 (UTC).
The second transaction reveals the withdrawal of 576,736 TERRA worth an estimated $115K and 5,487,381 (5.48 million) USTC currently valued at $117K. This transaction occurred shortly after the previous one, at 03:13 (UTC)—all funds are withdrawn, amounting to an estimated $3.9 million against prevailing rates.
Read Also: Deaton Predicts Another Date For The Termination Of The Battle Between Ripple And SEC.
At the moment, the Terraport smart contract currently holds a paltry 2.8 million LUNC worth $362. As of press time, an official statement from the TerraCVita development group or the Terraport team was made on Telegram but nothing on Twitter yet.
Rex “Rexyz” Harrison, a senior TerraCVita member, has not issued any statement.
On telegram, the TerracVita team is accepting the hack.
Another crypto influencer, Classy, says … I feel so defeated right now.
He also distanced himself from the event and noted that he never received any tokens or compensation from TerraCVita. Classy further disclosed that some of his relatives had lost thousands to the event.
Someone just drained the $TERRA liquidity.
I feel so defeated right now. I fought for almost a year straight for #LUNC & yet here we are & I've failed you all.
The one project that looked so promising for $LUNC.
Getting word that an exploit just took place on Terraport.
I…
— Classy 🔮 (@ClassyCrypto_) April 10, 2023
DeFi Community Has Been Suffering Hacks Recently
The news of the hack has sent shockwaves through the DeFi community, with many expressing their concerns about the security of decentralized protocols and the need for stronger security measures.
This is not the first time that a DeFi protocol has been hacked. In 2020, several high-profile hacks resulted in the theft of millions of dollars worth of cryptocurrencies. This incident underscores the need for DeFi protocols to prioritize security and implement robust security measures to protect user funds.
As of now, there is no information available on the identity of the attackers or how they managed to breach Terraport’s security. The incident is still under investigation, and further updates are expected in the coming days.