In a recent development concerning the Terraport hack, the Terra Classic team has submitted a proposal to lock up $2 million worth of stolen funds. The proposal was shared by a well-known crypto influencer, Classy, on their social media account. An update regarding the proposal was also shared on the Agora platform.
“Every minute these are not locked gives the attackers a chance to move them. It (the proposal) also tells criminals that we will stand up for what is right and not sit back and let them get away with stolen funds when it is in our power to prevent this,” Rex disclosed in the Agora text.
Rex recommended that if Proposal 11488 is approved by the community and the assets are locked up, TerraCVita will submit a follow-up proposal to explore options for reimbursing the affected users. The new proposal will be developed in consultation with the community.
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The Terraport hack, which took place in March, resulted in the loss of approximately $150 million worth of funds. The hack affected Terraform Labs, the parent company of Terra, which is a blockchain-based platform that offers stablecoins and other financial services. The stolen funds were mostly in the form of Terra stablecoins, which are pegged to the value of various fiat currencies.
Terra Classic To Lock Up $2 Million Worth of Funds As A Result of Terraport Hack
Following the hack, the Terra Classic team, which is a community-driven project that aims to preserve the legacy of the original Terra blockchain, has proposed a solution to lock up $2 million worth of the stolen funds. The proposal is aimed at preventing the hackers from cashing out the stolen funds and disrupting the stability of the Terra stablecoins.
According to the proposal, the $2 million worth of stolen funds will be locked up in a smart contract for a period of six months. During this period, the Terra Classic team will work with various stakeholders to come up with a plan to recover the stolen funds and distribute them to the affected users.
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The Proposal Stirs Up Community’s Reactions
The proposal has received widespread support from the Terra community, with many users expressing their appreciation for the efforts of the Terra Classic team. The Terra Classic community has responded to the proposal, and the majority of proponents y8i against it. The proposal will end in 7 days, and so far, 97% of votes have gone to “No with Veto.” 1.93% have voted “No,” and only 0.91% have picked “Yes.” The proposal is not passing as of press time.
This is a dangerous path to take for the blockchain. Terraport is a private closed source project that is not owned by the LUNC blockchain/community. Why is terraport now requesting governance help for their own mistakes? This is a no.
— reXx™ (@CosmoSreXx) April 23, 2023
Many community members opposing the proposal have pointed out that TerraCVita was negligent in not conducting a thorough code audit before launching Terraport. Some argue that a private group’s mistake should not be fixed by calling on the broader Terra Classic community.
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[…] of events, Terraport 2.0, the renowned blockchain-based logistics platform, has fallen victim to a hacking incident, leaving its users and stakeholders concerned about the future of the project. The perpetrators, […]