Terraport Hack Victims Inch Closer to Compensation After Months of Debate

TerraCVita's Terra Classic (LUNC) development group has successfully relaunched its decentralized finance (DeFi) platform, Terraport,

Holders affected by the April 2023 Terraport hack on the Terra Classic blockchain might finally see some relief, with TerraCVita, a LUNC validator, finalizing a compensation package.

Key Points

  • Compensation, Not Refund: TerraCVita clarifies the initiative focuses on compensating victims, not a full refund, as they argue Terraport itself didn’t steal the funds.
  • Package Details Remain Unclear: While the framework is finalized, specific details and compensation amounts haven’t been disclosed.
  • Prioritizing Cooperative Victims: Those who reported the incident to authorities and actively aided recovery efforts might be prioritized.
  • Funding Concerns: Raising fees on the Terraport DEX (decentralized exchange) is a potential source, but this could negatively impact the TERRA token price.
  • Community Input Sought: Proposals from community members have been received, but the chosen plan remains unknown.

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Background on the Terraport Hack:

  • Attack and Losses: In April 2023, hackers exploited Terraport’s liquidity wallet, losing $4 million worth of assets for liquidity providers (LPs).
  • Tracing and Recovery Efforts: Stolen funds were laundered through exchanges like MEXC, KuCoin, and Binance. Collaborative efforts led to the freezing of some assets and law enforcement involvement. A proposal to lock recovered funds on-chain was rejected by the community.

Read Also: XRP: Can it Reclaim its Glory Days?

Looking Ahead:

  • Compensation Not Guaranteed: While a framework exists, full compensation isn’t guaranteed.
  • Community Collaboration: Cooperation with authorities and active participation in recovery efforts might influence compensation prioritization.

Despite the lack of specifics, this development offers a glimmer of hope for Terraport hack victims. The coming weeks should reveal more details about the compensation plan and its execution.

 


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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
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